Just when you thought the Greek economic tragedy would end on a positive note conflicts have arisen, events have occurred, and things have turned to the worst.
Should we be surprised? No not really.
To the utter dismay of financial markets around the world, as Greece's eventual default will affect global markets it appears that the European Union Leadership, the European Central Bank, and the IMF are impotent, and just don't have the firepower they need to bail out a nation whose people are not interested in being in the EU any longer.
Let's go ahead and talk about this for a moment.
Even if Greece was bailed out, and their people would agree to an austerity program, Greece is not economically viable, their economy is now in shambles worse than it was before, getting worse every day, people have stopped paying their taxes, and they keep demanding all that has been promised.
Greece cannot pay back the money it has borrowed, and putting more good money and backing after bad doesn't make sense from a banker's standpoint, at least not any legitimate banker I've ever met.
Further, if the ECB along with other players are able to put forth a package that Greece does except for the bailout, then they will have used up their financial strength, meaning they won't be able to bail anyone else out.
There was an interesting article in the Wall Street Journal on November 9, 2011.
The article was titled "Don't Bank on ECB Rescuing Italy" by Simon Nixon.
The article stated; "We have seen this movie before.
Italian government 10-year bond yields are at a euro-era high of 6.
7% - a level from which no other euro zone government bond market has recovered.
Investors shouldn't bank on the ECB doing the market spitting.
First, the central bank has repeatedly said it has no mandate to act as lender of last resort to countries.
" If Italy is now at junk bond status, things can only get worse.
And it appears as if Italy's economy is looking much more like their famous pizza tower, only this time the foundation is giving away faster than they can shore up the onslaught of debt.
What does all this mean for the euro zone? It means it sounded like a real good idea, but it isn't working.
It also should be a signal to all nations of the world that socialism doesn't work.
Far too many deals were done with far too many countries to get them into the EU which did not make sense.
It was ill thought out, improperly planned, and although the idea did sound noble, it turns out that it was a bad mix in the concrete and that foundation is crumbling.
Indeed I hope you will please consider all this and think on it.
Should we be surprised? No not really.
To the utter dismay of financial markets around the world, as Greece's eventual default will affect global markets it appears that the European Union Leadership, the European Central Bank, and the IMF are impotent, and just don't have the firepower they need to bail out a nation whose people are not interested in being in the EU any longer.
Let's go ahead and talk about this for a moment.
Even if Greece was bailed out, and their people would agree to an austerity program, Greece is not economically viable, their economy is now in shambles worse than it was before, getting worse every day, people have stopped paying their taxes, and they keep demanding all that has been promised.
Greece cannot pay back the money it has borrowed, and putting more good money and backing after bad doesn't make sense from a banker's standpoint, at least not any legitimate banker I've ever met.
Further, if the ECB along with other players are able to put forth a package that Greece does except for the bailout, then they will have used up their financial strength, meaning they won't be able to bail anyone else out.
There was an interesting article in the Wall Street Journal on November 9, 2011.
The article was titled "Don't Bank on ECB Rescuing Italy" by Simon Nixon.
The article stated; "We have seen this movie before.
Italian government 10-year bond yields are at a euro-era high of 6.
7% - a level from which no other euro zone government bond market has recovered.
Investors shouldn't bank on the ECB doing the market spitting.
First, the central bank has repeatedly said it has no mandate to act as lender of last resort to countries.
" If Italy is now at junk bond status, things can only get worse.
And it appears as if Italy's economy is looking much more like their famous pizza tower, only this time the foundation is giving away faster than they can shore up the onslaught of debt.
What does all this mean for the euro zone? It means it sounded like a real good idea, but it isn't working.
It also should be a signal to all nations of the world that socialism doesn't work.
Far too many deals were done with far too many countries to get them into the EU which did not make sense.
It was ill thought out, improperly planned, and although the idea did sound noble, it turns out that it was a bad mix in the concrete and that foundation is crumbling.
Indeed I hope you will please consider all this and think on it.
Source...