Reply to: Wait a minute, let me get this straight - If Greece defaults

[Freamon]

The people that lent them the money.

The Greeks have a wonderful opportunity for change. If they default old habits stay and the cycle begins again. (UK Government, meet the new boss same as the old boss)

If they EU stays in Greece the government may actually have to start acting like one. Do you know even with the latest tax increases they Greek people are still no where near UK tax payers.

I would say it's the other way around. If they stay in the Euro, they will get more bailouts, and the govt can afford to keep spending in very nearly as reckless a fashion as before. These "austerity measures" are a bit like the austerity measures in the UK - barely scratching the surface of the cuts they really need to make. Even under the proposed plan that they put in place yesterday they would still be running a massive deficit.

OTOH if they default, the govt will be incapable of borrowing money from anywhere for a number of years, and then they'll really have to start living within their means.

[scooterscot]

Not allowed by whom? It may be that the Greek people will not allow full repayment.

The people that lent them the money.

The Greeks have a wonderful opportunity for change. If they default old habits stay and the cycle begins again. (UK Government, meet the new boss same as the old boss)

If they EU stays in Greece the government may actually have to start acting like one. Do you know even with the latest tax increases they Greek people are still no where near UK tax payers.

[Old Greg]

The UK can keep chanting default until it's blue in the face. It'll not be allowed to happen.

The Greek's are instead about to experience in 3 months what the UK has experienced over the last 30 years, a massive sale of the country's assets to make a quick buck. I can see the various pension funds on the horizon already licking their lips.

Not allowed by whom? It may be that the Greek people will not allow full repayment.

[AlfredJPruffock]

The UK can keep chanting default until it's blue in the face. It'll not be allowed to happen.

The Greek's are instead about to experience in 3 months what the UK has experienced over the last 30 years, a massive sale of the country's assets to make a quick buck. I can see the various pension funds on the horizon already licking their lips.

Who could argue with that ?

[scooterscot]

If Greek economy goes kaput its going to hit every major economy in Europe pretty hard.

The UK can keep chanting default until it's blue in the face. It'll not be allowed to happen.

The Greek's are instead about to experience in 3 months what the UK has experienced over the last 30 years, a massive sale of the country's assets to make a quick buck. I can see the various pension funds on the horizon already licking their lips.

[AlfredJPruffock]

Oh sorry, I was agreeing with what you said. It's instead of repeating it.

Aye DS ! Now I understand - thanks for the clarification ! In fact re-reading my own post I am wondering '' National Self-Interest leads to a robust economy '" sounds a wee bit extremist - oh my what is to become of me ? ...

Mother Dear - did you hear ?
They're teaching me the GooseStep

Father of Mine
Just in Time

Give me a machine
To wash my Jeans in

Send my compliments to the Chef

[Jason Mitchell]

Will the UK end up owing billions? (I'm not talking about the pocket change of £2.5 billion greek bonds we have)

But will the UK possible end up worse off than Germany and France who made the largest loans in the first place?



Perhaps Britain should just join the euro, you know better the devil you know and all that.

Treasury urges British banks to take big losses to help Greece avoid meltdown | Business | The Observer

If Greek economy goes kaput its going to hit every major economy in Europe pretty hard.

[Doggy Styles]

Sorry DS - not quite with you on this - or more precisely This ?

Oh sorry, I was agreeing with what you said. It's instead of repeating it.

[OwlHoot]

National Self Interest leads to a robust economy

What if indeed our economies were managed by politicians and not banks? We're game when we should be sovereign given our advantages.

Not sure if you're seriously proposing that, as your post was opaque, but ..

It's been tried many times, in communist countries and even here in the 50s to the 80s, and it always fails dismally.

Politicians and bureaucrats always end up confusing "national self interest" with their self interest, and their incentives are usually counterproductive or at best irrelevant to the interests of the enterprises they manage.

Also, with specialised high tech industries (which is supposed to be the UKs manufacturing speciality), management by ignorant politicians will fail even quicker.

[lilelvis2000]

EU going to pot as expected really. You can't have a bunch of self-interested states in a union. This is why the EU will never work. Its a great project by the French and Germans, and now they are short of cash, its falling apart.

Kinda reminds me of a Yes Prime Minister episode. Yes, Minister on the EEC

[Jeff Maginty]

..

[scooterscot]

National Self Interest leads to a robust economy

Perhaps management of an economy is a privilege not to be squandered. What if indeed our economies were managed by politicians and not banks? We're game when we should be sovereign given our advantages.

[AlfredJPruffock]

The countries I named are a lot better running their economies than we are.


Good point - and indeed some economies will out perform others due to a variety of factors - energy reources - manufacturing capablity - currency strength (or weakness!) access to export markets , and as you mentioned the t management expertise of the economy by the ruling political class/Government.

It is noteworthy these economies you mentioned are managed by their National Government - ipso facto National Self Interest leads to a robust economy - what then if management of the economy is administered elsewhere ?

[scooterscot]

The Swiss, Canadians and Norwegians are not members of the Euro. Do you realise (quite apart from being able to explain the logistics of having these people run our economy) what a stupid comment you have made

Does it occur to you that maybe they don't wish to join the Euro for very good reasons

Whit??

You asked:

To give it away just because some of you think that we are not very good at running our finances.
Well who else is better?

The countries I named are a lot better running their economies than we are.

Stick to pimping, you're made for it.

[AlfredJPruffock]

This.

Sorry DS - not quite with you on this - or more precisely This ?