Originally Posted by Mr.Mike
"GREECE is a tiny country, less than 2% of Europe's GDP. Its got about the same GDP as the State of Nevada. Now Nevada's economy not doing well since the Housing Bust. But do we in USA worry about our whole nation's economy just because housing prices had a real bust in Nevada? Same thing in Europe is that Germany is growing and is 15X the GDP of little Greece, so stop worrying always about Greece. One way or another, the Greek Government will have to get in line and be rational."
Found this post
Really couldn't disagree more with the source of your post Mr.Mike. To really understand the issue takes a great deal of time.
For me to understand it I had to break it down into degestable chunks:
Why does this economically small country have such importance? (Relatively speaking economically Greece is not huge no offense Greece)
Debts are held by european banks and non payment (default would do significant damage)
Also does it pave the way for other nations to default such as Portugal, Ireland or Spain?
Debt forgiveness but stay in Euro ? Still financial damage unsure how viable this is.
So this debt is important and at this time I lean to an eventual Greek exit (HSM Grefuss - I concede - 6 months later !)
1) There is no majority Greek party at the moment, attempts to for a co-allition have failed so we wait further elections mid june.
2) Make no mistake 80% of greeks want the Euro currency
3) The majority do not want the harsh austerity they are suffering
4) It is a mess that we should all be watching unfold.
I have posted this link before (last week) its an hour long by former UK MP Michael Portillo and it explains things rather well.
Don't under rate this issue, the debt to GDP is huge and unlike the USA and England the Greeks can't print money to pay debts as we can. Also GDP is shrinking as debts rise so this is real mess
and causing division in Europe. G8 sumit states that Pres Obama wants (as do other EU national leaders) Greece to stay in the Eurozone.
WELL I WANT TO BE AN ASTRONAUT BUT ITS JUST NOT GOING TO HAPPEN !!
In short some of the parties are pandering to the people with promises of less austerity this will not satisfy the EU. Meanwhile the parties that satisfy the EU are not getting the votes from the people as it means austerirty ! Its a bad situation austerity = suffering - povererty for some. No austerity = return to drachma - poverty and savings reduced by the conversion of euros to sinking drachma.
(This is why the bank run has not been publicised in Greece, anyone with a brain stem is taking Euros out as a switch would happen overnight at a weekend - bang its done)
Hope this helps anyone that is wondering what the he*& is going on?