Thursday, June 30, 2011

Greece still needs to address its solvency issue

Carl Astorri

Greek Prime Minister Papandreou has narrowly averted economic disaster as parliament agreed to the Greek austerity measures.

This will lead to a further bail-out of the country and fends off the risk of default. The austerity measures will see a €28 billion (£25 billion) package of tax increases but he now faces unrest in the country and like the mythological Greek king Sisyphus - condemned to roll a boulder up a hill only to have it roll back down again just before reaching the top - will have only survived one crisis in order to face the next.

Unless Greece can pull off the seemingly impossible and grow its way out of debt, which we doubt very much, the solvency issue will still have to be tackled.

However, delaying the inevitable is the best option.

More Here..


  1. Think about how incredibly intelligent it would have been to tackle this problem years ago when austerity measures would have averted this disaster completely as opposed to buying a few months more time. We are not yet quite at the point Greece is yet wouldn't it be smart to cut our spending, stop borrowing and make other long term adjustments to our policies that would allow our economy to flourish? All we lack is intelligewnt leaders...

  2. cccccccccccccccccvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvv

  3. cut spending stop borrowing...equals pain now.

    sure better in the long run, but majority live in the here and now only, pain today is pain...forever? added that pain today may mean not getting reelected, losing power and how many have revenue streams from gov sources, unemployment would ramp..again, but this time from fed rolls and other reasons why the show goes on and the can is kicked.


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