Comments on: Greek Bailout News (1)

By: suncatchers

suncatchers — Thu, 24 Nov 2011 02:18:45 +0000

suncatchers…

[...]Greek Bailout News (1) | afoe | A Fistful of Euros | European Opinion[...]…

By: Bail Bonds Las Vegas

Bail Bonds Las Vegas — Fri, 28 Oct 2011 10:56:59 +0000

Las Vegas Bail Bondsman…

[...]Greek Bailout News (1) | afoe | A Fistful of Euros | European Opinion[...]…

By: Al

Al — Sun, 21 Feb 2010 08:52:37 +0000

history does repeat itself. Examine the road which carried the USA from being a “Articles of Confederation” regime, to being a “Constitution” regime under a federal government…

By: ×”××™×—×•×“ ×”××™×¨×•×¤×™ – ×—×“×©×•×ª ×›×œ×›×œ×” ×•×¤×™× × ×¡×™× – ×¤×‘×¨×•××¨ 2010 / ×’×™×œ×™×•×Ÿ 24 « ××•×¡×˜×¨×œ×™×” – ×™×—×‘"×œ ×¢×œ ×”×–×ž×Ÿ

Mon, 15 Feb 2010 02:02:58 +0000

[...] http://fistfulofeuros.net/afoe/economics-and-demography/greek-bailout-news-1/ [...]

By: Should Greece receive a Bail out?

Should Greece receive a Bail out? — Wed, 03 Feb 2010 00:01:37 +0000

[...] Originally Posted by zara There seems to be support growing in Brussels for some kinda economic Greek bailout to support their scandalous deficit. The Euros tumbled against the £ recently as a result of Greeks politicians repeatedly fixing the statistics to show the deficit was lower than it actually is. But a bail out would be rewarding this behavior. Should the rest of the euro zone be made to suffer because of the incompetence of Greek politicians? After all the Other struggling economies like Ireland and Latvia received no such help and recently passed extremely auster budgets, slashing pay and benefits to pay for the recession. Meanwhile Greece passes a populist budget that INCREASES spending. Obviously its unthinkable that a euro-zone country should have to go to the IMF, but this sets a terrible precedent. What incentive do other countries have to be fiscally responsible? The money will come with strings attached. It’ll have to. But how will Greek citizens react to having their domestic economy and pensions and taxes and civil service curtailed by fellow Eurozone members? It was just a month ago when some militants, supposedly due to proposed budget cuts, blew up a bomb in front of the Greek Parliament building. Zara, this blogger has been covering the European economy problems really well. Here’s his latest article from this past Sunday: Greek Bailout News (1) | afoe | A Fistful of Euros | European Opinion [...]

By: govs from Latvia

govs from Latvia — Mon, 01 Feb 2010 14:38:15 +0000

Thats exactly what’s happening in Latvia. There are just no microeconomic mechanisms leading to PPI decrease via austerity measures.

The firms just lay off workers, close subsidiaries, owners declare insolvency, but there does NOT occur production at lower prices.

The only result is extreme unemployment (reaching 23% in Latvia), mounting of non-performing loans, increase of hopeless business loans, increase in debt/GDP ratio, consumption failure.

In case of Greece this path is very risky, and Greece has different causes of problems. Problem of Greece is exploding public debt due to exorbitant public spending allowed by running of long-term public deficits. But the banks in Greece have been sound until now.

In Latvia exactly the opposite happened – public deficit was only 19%of GDP, but Latvia was hit by Iceland-Type banking crash, and other as Iceland was forced by EU to unconditional bailout. Of course, such an overexpensive policy caused public finances to crash as well.

By: Pavel from Prague

Pavel from Prague — Mon, 01 Feb 2010 12:24:02 +0000

Wasn’t “internal devaluation” called “deflation” until recently?

By: BaryonicLord

BaryonicLord — Mon, 01 Feb 2010 09:40:57 +0000

As usual an excellent posting from afoe.

One aspect I feel may need some further discussion is exactly how a successful Greek ‘internal devaluation’ would be effected. As far as I know, there are very few, if any, examples of successful internal devaluations in the context of a fixed exchange rate regime. In fact, internal devaluations usually merely aggravate the damage before the inevitable devaluation/depreciation.

The reason for this seems to be that producer prices (i.e. the prices charged for exported goods) simply don’t adapt sufficiently or quickly enough for export demand to supply adequate fuel for sustainable growth. In the Greek case, the need would be to slash e.g. hotel rates and restaurant prices ca 20% to lure tourists back to Greece who have been going to Turkey/Thailand/Egypt etc. It’s very difficult to see that this could be done in reality.

Since Greece can’t devalue/depreciate and the costs of leaving the euro (I agree) would be enormous it seems even in the best case (a resolute and successful Greek fiscal retrenchment) Greece would be looking at a semi-permanent depression for the foreseeable future.

By: uberVU - social comments

uberVU - social comments — Mon, 01 Feb 2010 04:42:48 +0000

Social comments and analytics for this post…

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By: Rooster Shamblin

Rooster Shamblin — Mon, 01 Feb 2010 03:15:49 +0000

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