The Greek Situation is Worse Than Anticipated

31 Oct

Depends on who was doing the anticipating…

The cumulative error is colossal.

That sums up the entire EU experiment…

Thomas Wieser, the head of the European Working Group handling Greece, said today that press reports of further debt restructuring and official “haircuts” in the current Troika talks are pure fantasy.

If that is so – and what he means is that Germany, Holland, Finland, and Austria will not tolerate a haircut on their holdings of Greek debt – then the creditor countries are trying to maintain a ridiculous illusion for their own internal political reasons.

Greece cannot claw its way out of a 190pc of GDP debt load. The official haircut is coming sooner or later, and it will be an explosive political moment.

The problem with Socialism is that eventually you run out of other people’s money – in this case the “other people” are German…

Telegraph

 

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