In big trouble this time
Recent development in a Greece default are rising up as Standard & Poor’s dropped Greeks bonds to “junk-bonds”. This in another fine example of how the carnivorous free market is feeding itself with a big nutrient called speculation. And European leaders and policy are not even helpful at all as they are divided (what a gap!) on how to handle the Greek question. Many people knew that Greece when added to the EU currency union it’s economical and financial structure is not up to the state-of-the-art of other nations. Negligence and tax evasion did the rest. European financial observers were surely up to the view about Greek’s national debt and status. And they played with it on the stock exchanges. Then there were all the tourists going to Greece having cheap holidays in an EU country (=means you have the security and stability of an EU country and can pay with your EUR money). I think none of the vacationers to Greece ever thought about the cheap services and meals you could get there and why in many places small restaurants neither had a cash desk(!).
And so we did have Greece it’s own ongoing despite the “strange” issues it has inside. Politicians are very cautious about their arguments they put on table. As long as Greece was able to handle it’s enormous debt it’s own way everything was fine. And I cannot believe the ECB never thought (at least a bit) about the huge debt and deficit of the Greek economy. Then Lehman Brothers bought more decline to the fragile Greek economy, suffering the last 10-15 years. Greece (I supposed) was hoping in stability entering the EUR currency club. But with no strange austerity and new procedures of optimization in public administration and spending this positive effect never came to work.
Nowdays we are witness to the market ruling Greece it’s own way. Markets will have Greece to fail to speculate on it’s default.
Yes, we need to reprove Greece about it’s household’s over the last 10-15 years. Yes, we need to blame our EU politicians because they never took an eyeball deeper into Greece to understand maybe future risks. Yes, we need to condemn unlimited speculations on state defaults.
The latest shout-outs about a “kick-out” of Greece out of the EU currency union are ridiculous. Even Germany (I suppose) was basically informed about the Greeks economical, social and financial weakness and the policies that came to work in the Hellenic country. Policies that didn’t target on efficiency and saving in costs of public administration and health care. So Germany is right to invoke strict rules if any help package should be sent to Athens. And Athens itself needs to confess it’s sin not be have worked as recommended on it’s internal problems. But Germany cannot almost kick out Greece of the European Currency Union because they are near default. This kick out might be a huge damage to the EURO. In fact, many think that the EURO know is running it’s real challenge since introduction in 1999. To find mechanisms and control strategies to deny further ASAD “a-state-almost-default” events. But Bruxelles and it’s member states are not really willing to touch deep issues on how to deal with this “Greek geek”. The EU European Union) needs finally to stand tall as one entity and to find ways to point out long-term policy goals and to win nationalism in it’s member countries.
As you can see, big institutions have the same behavior of human beings. We realize the “wrong” or the “emergency” only in case of it’s put into effect. So we skip smoking only when told by the medic we have lung cancer. Preventive measures we didn’t apply to avoid it. Ad that’s the same many deal recklessness with their money until one day the eviction letters flies in.
In big or small, we do it all (the same way like they do).
Filed under: News, Politics | Tagged: Athens, bail-out, Bruxelles, Default, Euro, European Union, Germany, Greece, Merkel | Leave a comment »
As I told in the past. Mistakes were done and the ongoing was not the way US expected it would. The “preventive war” like they called it in Europe was partially founded by unilateral decisions Washington took. But in the end we all need to resolve the problem. I hope that this “case” will show up to all of us that “I go my way” tactics shouldn’t be the solutions to be picked. I claim on Europe and other Western-Allied countries when they decided to “turn their head away” instead of dealing with the US to head for a shared solution (I have to admit that all listed actors were a bit stubborn!). Finally this “its-your-faulf-GWB” must have an end. We are all humans and I think George will pay the price for his war. But what would we’ve done if there had been another terrorist attack on US soil in the 9/11 aftermath? Tricky question…
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