Wednesday, February 22, 2012

The money Greece does not have

Now that the Greeks have got the rescue bailout from the European Union and others, everybody is congratulating each other on a job well done but is it really? The deals are harsh for a start and humiliating like the EU monitors will be Greece to make sure that the Greeks keep their end of the bargain, a separate account will be setup whereby the bailout funds will be used to pay off creditors first before Greeks get their hands on it, reduce the debt to the so called manageable levels of 120 percent of GDP by year 2020 (who knows the future the Europeans??!!!) and there is a big if that if the elections coming in April does not yield a favorable government to Europe than all hell can break lose. Also there is that some of the creditors may not agree to more than 50 percent of the lose of their money.

We know that the Greeks have sacrificed a lot during this recession but to play devil's advocate, they have also enjoyed a lot before this crisis revealed the deception of their former government who fudged/lied/manipulated/deceived their way to the European Union. Technically when you have a mortgage and the investors under pressure agree to reduce their interest in that mortgage it will be considered a default and your credit rating gets a hit and although the Greeks credit rating is in the dumps they still got a pass this time around and got the bailout funds to pay their previous creditors

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