http://www.zerohedge.com/news/2015-06-28/greek-capital-controls-begin-banks-remain-closed-monday Initial trading in Asia looks pretty bad. You might see markets rebound this week on rumors of a deal, debate on whether or not Greece matters, or good old fashion central bank intervention. Either way, this could be the start of something concerning. To a lot of people, this outcome was obvious years ago but the can was kicked down the road for half a decade. The Euro is a failed experiment and a one size fits all currency makes no sense. It's absurd that Greece and Germany share a currency. Now Europe has multiple debt bubbles and the smallest one appears ready to blow first.
It sucks to be a socialist failure dependent on the money of others. Oh, well....that's socialism for you. Obama has on the same track, albeit a much slower track.
What I'm worried about is Obama stepping in to support Greece using US taxpayer money. I hope that doesn't happen, but when the President is an economic idiot you never know what can happen.
Absurd. Greece is a mess. But places like Germany and most of the Eurozone will hold up with Greece just fine, places like Germany will do better than with even the USA for the long term.
There are a lot of reasons for the mess in Greece including overspending and failure to enforce tax laws, which is why I shudder every time the Repubs in Congress cut funding for the IRS -it's like they are inviting a Greek mess over here). Paul Krugman has an interesting column today: As for what will happen today on Wall Street, it ain't lookin' good. I wouldn't be surprised to see the DJI drop over 500 points or more. - - - Updated - - - There are a lot of reasons for the mess in Greece including overspending and failure to enforce tax laws, which is why I shudder every time the Repubs in Congress cut funding for the IRS -it's like they are inviting a Greek mess over here). Paul Krugman has an interesting column today: As for what will happen today on Wall Street, it ain't lookin' good. I wouldn't be surprised to see the DJI drop over 500 points or more.
That is what will happen, more or less. The US will guarantee its IMF loans, pay them off, and then forgive the debt like it did with Mexico way back when.
America, are you watching this debacle? Socialism does not work. Entitlement programs and outrageous spending erode your country and cannot be sustained. Then you are bankrupt. Spending must be CUT.
All i see is Krugman not being able to admit he was wrong is just passing the buck. For an example http://money.cnn.com/2015/06/29/news/economy/puerto-rico-default/index.html?iid=hp-stack-intl According to Krugman logic ( or the complete lack of logic depending on your perspective) they did not spend enough!
Nope, PR is in the same boat as Greece. Neither has their own currency - Puerto Rico's is the dollar and Greece's is the Euro. Had you read the column, you'd have noticed this: And this collapse, in turn, had a lot to do with the euro, which trapped Greece in an economic straitjacket. Cases of successful austerity, in which countries rein in deficits without bringing on a depression, typically involve large currency devaluations that make their exports more competitive. This is what happened, for example, in Canada in the 1990s, and to an important extent it’s what happened in Iceland more recently. But Greece, without its own currency, didn’t have that option.
"Yes, the Greek government was spending beyond its means in the late 2000s. But since then it has repeatedly slashed spending and raised taxes. Government employment has fallen more than 25 percent, and pensions (which were indeed much too generous) have been cut sharply. If you add up all the austerity measures, they have been more than enough to eliminate the original deficit and turn it into a large surplus." He admits what the problems were and then it typical Krugman fashion about faces and then spins like he always does.. I know quite well his fondness for the word austerity and his love for blaming it.
Putting different countries with differing GDP levels on the same currency is disastrous. They are finding that out now.
The reason he doesn't like austerity is a rather simple one - it mostly doesn't work in and of itself as we have witnessed across Europe so many times. There's a lot more to the economic woes of Greece than you are apparently aware of.
And yet you cant get around him admitting what the problems were but him wanting those same things to continue thinking it would magically get better.
Well liberals, shouldn't we just bail out Greece so they can continue the liberal dream? Isn't it our responsibility to spend money we don't have so that the recipient can continue their behavior?
That hasn't been historically the case but Germany is where they are, and Greece is where they are not through blind chance, bad luck or pure coincidence. It all comes down to one word...austerity. That is the realization that work and productivity is the rock solid base of any nation or civilization. The Germans have that ethic. The Greeks do not. Obama and the left have worked hard to break down America's work ethic but it's only been partially successful. The ant is still ahead of the grasshopper thanks to examples like Greece.
Obama is a RIGHT OF CENTER MODERATE who is in Wall Street's pocket, he's done nothing socialist. They said he was a socialist, that's why I voted for him, I WANTED A SOCIALIST! Then he turns out to be this right wing assss whole.
I have to chuckle at those blaming a currency for failed socialist policies. Why did Detroit fail the Tooth Fairy? LOL!
Putting differing countries with different GDP levels on the same currency is what really did it. It's just not possible to do. What do you think would happen if the US, Canada and Mexico all went on the same currency? The nation with the stronger GDP will be propping up the others. Of course over spending doesn't help, but even if they didn't it was inevitable from the beginning.Detroit is a perfect example of this, it had just about ZERO GDP and was paying everything with the US dollar. Detroit would have ended up bankrupt no matter who was in charge and how much was being spent. If there is NO work there, there is no money period.
