Tag: Grexit

Greece Gets the Worst of Both Worlds

 

greek facepalm-225x300It appears Greece has ended up paying two costs. It chose first to spurn the EU through a referendum and has suffered a banking system shuttered and a major contraction in its economy. It then spins around and takes a deal that is to most observers worse than the one it turned down the previous week. So it pays for a financial crisis and for more austerity.

Heckuva job, Alexis.

So while the European and US stock markets were having fun and the euro was trading down — never mind what happened in the Athens stock exchange — here is some of the mishegas happening in Greece as they approach nighttime.

Member Post

 

There’s an excellent piece in Forbes that explains why Grexit is already well underway. Today’s no vote will only accelerate the process. As the author notes, Grexit is a process, not an event. And it is a process that has already begun. Greece’s membership of the Eurozone was partially suspended when the ECB capped ELA. […]

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Athens on the Potomac

 

U.S. Debt ChartFinancial experts in New York, London, and Brussels have tut-tutted Greece’s economic travails as Athens considers its future with the European Union. Why did they borrow so much money? How can they ever pay it back? Do they think that much debt is sustainable?

Instead of pointing fingers at the innumerates running Athens, they should consider our own situation. Jason Russell of the Washington Examiner shows how America’s debt projections look suspiciously like Greece’s recent history.

With all the chaos unravelling in Greece, Congress would be wise to do what it takes to avoid reaching Greek debt levels. But it’s not a matter of sticking to the status quo and avoiding bad decisions that would put the budget on a Greek-like path, because the budget is on that path already.