Greek agreement not happened yet?

[BrilloPad]

Are the Greeks being pushed too far?

If they don't go for it then life is going to get alot tougher for the greeks.

[eek]

If they don't go for it then life is going to get alot tougher for the greeks.

Yes but its politicians we are talking about here. Do you expect them to

a) vote to make people redundant
b) wish for the magic "takong the blame" fairy to appear.

Greek politicians have been asked to do A but by doing nothing or saying no can pick B. Guess which one is likely to be the end result.

[Paddy]

[BlasterBates]

If they don't go for it then life is going to get alot tougher for the greeks.

Absolutely, it's not like either they take cuts in pay or they don't. Which is why they will agree. Then they'll all go on the streets and protest and then go home again.

But their cuts are no worse than the cuts a lot of people have had on their own pay in other countries in the private sector. So far they've only taken a 10% cut. That's not a big deal considering the situation they're in. The retirement age has risen to 65 from 61.

[sasguru]

. Which is why they will agree. Then they'll all go on the streets and protest and then go home again.

.

I agree with the above. But what happens next? They will get their billions and the economy will keep contracting. All that's happened is that their debt will have increased again; their ability to repay is as remote as ever.
Eventually Greece will have to accept the inevitable and do a proper default as opposed to the piecemeal one they are doing now. When that happens, lets hope the banks are well-capitalised.

[Arturo Bassick]

When that happens, lets hope the banks are well-capitalised.

Isn't that the reason for the delaying tactics? Everybody knows that eventually the Greeks will default, but "if we can delay it long enough then we just might be able to save enough so they don't take the rest of us" mentality. Completely ignoring the fact that the debt is growing faster than we are saving.

IMHO there is only one solution. Take it on the chin, default and drop out of the Euro. The sooner the better for all concerned.

[BlasterBates]

I agree with the above. But what happens next? They will get their billions and the economy will keep contracting. All that's happened is that their debt will have increased again; their ability to repay is as remote as ever.
Eventually Greece will have to accept the inevitable and do a proper default as opposed to the piecemeal one they are doing now. When that happens, lets hope the banks are well-capitalised.

You're quite right it's not going to be solved with this agreement. But that's OK because it gives time for all the banks and other countries to sort out their problems. This piecemeal approach is exactly the right strategy, buy time, let the banks recapitalise let the healthy economies start to boom a bit. If the bankruptcy had happened two years ago it would have potentially been a catastrophe. Now a bankruptcy would be a painful body blow. Give it a couple of years the banks will be saying "what Greek bonds?...oh you mean those worthless things would put in the vault two years ago..."

[sasguru]

You're quite right it's not going to be solved with this agreement. But that's OK because it gives time for all the banks and other countries to sort out their problems. This piecemeal approach is exactly the right strategy, buy time, let the banks recapitalise let the healthy economies start to boom a bit. If the bankruptcy had happened two years ago it would have potentially been a catastrophe. Now a bankruptcy would be a painful body blow. Give it a couple of years the banks will be saying "what Greek bonds?...oh you mean those worthless things would put in the vault two years ago..."

Problem is, Portugal's next

[BrilloPad]

Eventually Greece will have to accept the inevitable and do a proper default as opposed to the piecemeal one they are doing now. When that happens, lets hope the banks are well-capitalised.

Absolutely. But the only way they are going to get better capitalised is by withdrawing loans from business? Obviously Super Mario has been providing loans at 1% - but alot of that is going into Soutern European Government debt.

Chinese curse - may you live in interesting times.

[sasguru]

Absolutely. But the only way they are going to get better capitalised is by withdrawing loans from business? Obviously Super Mario has been providing loans at 1% - but alot of that is going into Soutern European Government debt.

Chinese curse - may you live in interesting times.

Portugal's 10 year bond is now at 13%,even after the ECB money printing.