Financial Standard Comments - Bankruptcy could be bliss

Comment by salty ()

salty () — Mon, 13 Feb 2012 09:38:00 +1100

I could not agree more. I am flabbergasted that Merkel and the German people and Sarkozy (I exempt the French people who are not part of his lunacy) cannot see how counter productive their policies are. If you force the Greeks to squeeze every bit of discretionary and not so discretionary money out of their economy then how can they repay the more and more bailout money being forced on them to essentially bail out French and German banks. It is a vicious circle which will lead to a default sooner or later. Better default now and leave the euro than lurch from crisis to crisis interminably all the while being forced by the Germany to borrow more. The sooner they default the sooner they can recover.
The existence of the Eurozone is for the benefit of the Germans and their export market. The German people don't need to go into debt to buy German goods because we the fools in the other Eurozone countries do it. But do they buy our products - no.
Also they can go on about having dragged thenselves up by their bootstraps all they like but they conveniently forget that the Americans aided them with Marshall Plan. Granted the UK and France benenfited the most but that Germany was the fourth largest beneficiary which showed great magnaminity by the US to what frankly at the time was a despicable enemy which had committed horrific crimes

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Comment by Emmanuel Lim (from Toronto, Ontario, Canada) ()

Emmanuel Lim (from Toronto, Ontario, Canada) () — Mon, 13 Feb 2012 10:14:11 +1100

This reminds me of a credit business proverb: If you owe the bank 100k and you don't have money, then you have a problem. If you owe the bank 1 billion and you don't have money, then the bank has a problem.

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Comment by GS ()

GS () — Mon, 13 Feb 2012 16:54:14 +1100

Is it not the case that, even with the minimum wage and pension reductions, Greece will still be running a deficit budget, even ignoring its interest payments?
Whilst painful, that is still not as bad as a disorderly default and its consequent ceasing of any new lending whatsoever.
If these measures feel intolerable now - they're still not as bad as immediately being forced into a balanced budget!

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Comment by Tom ()

Tom () — Mon, 13 Feb 2012 23:23:33 +1100

You're all forgetting the real reason why the "powers to be" in Europe won't let Greece default. It's because for every borrower there is a lender ... think about whose on the other side of the ledger ... German banks, and to a lesser extent other European banks as well as big Pension funds, etc.

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