We can easily forgive a child who is afraid of the dark; the real tragedy of life is when men are afraid of the light. ~ Plato
Update, 1/28: The Greeks are close to a deal with private investors who own their bonds and who will have to take enormous losses in investments. This reduces the country’s debt and enables them to secure the euro 130 billion bailout. Unfortunately, it does nothing to resolve their weakening economic conditions as they inch their way to cuts in spending so they can get their debts under control.
Original Story: Only the hardest of hearts could be unfeeling looking at this photo. Worse yet, it mighteventually be us.
We will literally be Greece in the next decade if we don’t stop our spending spree. Some European nations will be Greece in less time. The entitlement state that Greece has become is unsustainable. Greece now needs another bailout from the EU for €130bn. Germany wants the Greeks to cede tax and spending sovereignty to an EU budget commissioner before they give them one more dime.
Greek compliance with EU demands has been less than stellar. On the other hand, giving up sovereignty over financial tax and spend decisions to receive a handout is a lot to ask. Will it even work? You’ve seen the riots in Greece when unions were threatened with cuts. The Greeks are angry about Germany’s demands.
Under the new guideline, the Greeks would have to put debt service first and foremost. It’s what they should do but it’s not what they are used to or want to do. The Greeks would be allowed to spend under normal debt service, but that’s all. Another demand is to cut 150,000 government jobs within three years (I wish we could get that deal). The EU also wants a decrease in the Greek minimum wage.
Obviously, the Germans don’t want to dole out more handouts without a lot more control.
Suicide and depression among the Greek population has increased and their faith and trust in their identity has suffered. Read more: Greek mental health crisis
Government jobs in every country pay more and give better benefits than any equivalent private sector job. Since the government has no money of its own, as more and more enter the government work force, who the devil is going to pay for these jobs?? Greece provides the answer to that question.
The Greek Prime Minister, Lucas Papademos, expects debt swaps soon and says they will not default. He sees progress in the negotiations. If Greece defaults, it could set off a string of financial recessions throughout the EU and eventually the U.S.
Greece is in a deep recession and heading for a depression. They will possibly default this year. Their government has a multiparty system which includes socialists, center-rights, and communists. Read more: UK Yahoo