Thursday, June 16, 2011

What Part of “NO!” Don't the Greeks Understand?

Europeans wince at austerity, and markets fear their wrath - San Jose Mercury News

OK, Greece needs another bailout. They are waiting for the IMF to release the next piece of €155 billion (total) bailout package. But the IMF won't do that until Greece agrees to an austerity package. But the Greeks don't want another austerity package. Hence the rioting in Greece. (It is on the news isn't it? I mean "riots in the streets." I honestly don't know since I have so little contact with regular news.)

So if the Greeks don't agree to an austerity package so that the IMF will release all that lovely money, the Greek government will probably not be able to do squat, since they won't be able to borrow money to pay for salaries and pensions. Both Forbes and the London Telegraph are calling this Europe's Lehman Brothers. (You do remember Lehman Brothers, don't you. They failed, right before everyone else became "too big to fail" and put a monkey wrench in the global economy.)

So the question is, are you ready for round 2?

No comments: