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View Diary: Beware of Greeks bearing debt (141 comments)

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  •  And it did (1+ / 0-)
    Recommended by:
    greenearth

    Of course, any bailout of Europe may repeat the cycle of European export/import imbalances as well.

    China funding the US gov't could be the same thing.

    US economic aid to foreign countries is similar.

    Long before Greece got into this debt mess, the people have been conditioned to think of this sort of debt program as onerous. Greece hasn't defaulted since WW2 when the Germans were occupying Greece, but Greek history books are replete with stories of defaults caused by barbarous interest rates. This is yet another reason why I think the country won't buy this, but it's going to be a bad lesson for them, and for the banks that loaned them money.

    There are two kinds of people in this world. The kind who divide the world into two kinds of people, and the kind who don't.

    by upstate NY on Tue Apr 27, 2010 at 03:16:11 PM PDT

    [ Parent ]

    •  If greece does completely blow up, (0+ / 0-)

      what's your view on the immediate impact on Portugal, Spain and Ireland?

      •  Portgual and Ireland are going (1+ / 0-)
        Recommended by:
        Richard Lyon

        to get more help than Greece and suffer brutal austerity that they won't come out of.

        I don't see the big problem in Spain. Spain seems better off.

        The one problem Spain has is investment in Greece, big investments.

        Of course, Austria came out swinging a stick at Greece today, which surprised me since Greek troubles mean a big Balkans recession...and Austria and Greece are hugely exposed in the Balkans. Both countries have well over 65% of their investments there. I have no idea what Austria is doing. If the Greek banks go down, Austrian banks are drowning.

        When I look at the Portuguese and Irish debt situation, I see Greece. The only positive about them is better PR since their debt was run up in the private sector. The problem is, Ireland has agreed to take on that debt as public debt. 4 million people, and they already have public debt of 80 billion. They are now going to take on that amount in toxic bank assets.

        There are two kinds of people in this world. The kind who divide the world into two kinds of people, and the kind who don't.

        by upstate NY on Tue Apr 27, 2010 at 03:25:02 PM PDT

        [ Parent ]

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