Greece fail(s)

[Zippyjuan]

There is a reason they don't trust Greece. They have failed to come through on promised actions in the past. Europe doesn't want Greece to get off free (others may want similar deals) but they also don't want it to fail because that may spread. Everybody is in a difficult position on this one.

 

[Pauls' Revere]

There is a reason they don't trust Greece. They have failed to come through on promised actions in the past. Europe doesn't want Greece to get off free (others may want similar deals) but they also don't want it to fail because that may spread. Everybody is in a difficult position on this one.

My take: Greece will end up on the hook, period. The E.U. will ultimately go into self preservation mode and defend itself from any Greek contagion or spillover. The E.U. will stand firm against Greece as they cannot allow the E.U. to fail to remain economically competitive. I think Greece will be put on probationary membership status. Meaning not having the rights and status a full E.U. member would have but they still are in the club.

 

[Zippyjuan]

Sounds possible.

 

[Pauls' Revere]

Sounds possible.

http://finance.yahoo.com/news/greece-faces-pressure-back-deal-223800302.html

If the talks don't succeed, some of Greece's eurozone partners warned, the country could be temporarily forced out of the euro, the European single currency that Greece has been a part of since 2002. No country has ever left the joint currency, which launched in 1999, and there is no mechanism in place for one to do so.

Fuck, I should be Prez. This shit is easy.

 

[Occam's Banana]

(h/t Richard Ebeling: An "Austrian" Economist's Advice for Greece and the EU)

Ludwig von tried to warn 'em, almost 85 years ago:

“[T]he policy of the European nations has been based on nothing else than preventing and eliminating the function of the market as the regulator of production. By duties and trade-policy measures of other sorts, by legal requirements and prohibitions, by the subsidization of uncompetitive enterprises, by the suppression or throttling of business that offers unwelcomed competition to the spoiled children of the political regime through the regulation of prices, interest rates and wages, the attempt is made to force production into paths which it otherwise would not have taken. [...] The result of these policies is the severe economic crisis under which we suffer today. The crisis had its starting point in mistaken economic policy, and it will not end until it is recognized that the task of governments is to create the necessary preconditions for the prosperous operation of the economy, and not squandering more on foolish expenditures than the industry of the population is able to provide.” - Ludwig von Mises, "The Economic Crisis and Capitalism," [1931], in Richard M. Ebeling, ed., Selected Writings of Ludwig von Mises. Vol. 2: Between the Two World Wars: Monetary Disorder, Interventionism, Socialism, and the Great Depression, (Indianapolis, IN: Liberty Fund, 2002), pp.170-171.

 

[Pauls' Revere]

Remember when the E.U. said there was going to be "regime change".

http://finance.yahoo.com/news/greek-pm-tsipras-faces-party-022322066.html

Just hours after a deal that saw Greece surrender much of its sovereignty to outside supervision in return for agreeing to talks on an 86 billion euro bailout, doubts were already emerging about whether Tsipras would be able to hold his government together.

The terms imposed by international lenders led by Germany in all-night talks at an emergency summit obliged Tsipras to abandon promises of ending austerity.

Instead he must pass legislation to cut pensions, increase value added tax, clamp down on collective bargaining agreements and put in place quasi-automatic spending constraints. In addition, he must set 50 billion euros of public sector assets aside to be sold off under the supervision of foreign lenders and get the whole package through parliament by Wednesday.

What's that golden rule? "He with the gold makes the rules" Greece, Europe's bitches.

 

[Demigod]

I guess it is ironic that Germany is the main country in the Greek bailouts. When the German economy was teetering after WWII and needed bailed out, it was Greece who stepped up (along with other countries) to help them. In 1953 Germany had most of their debt eliminated/ written off. Greece was one of the holders of some of that debt. http://www.france24.com/en/20150129...ite-germany-economic-miracle-greece-austerity



More at link.

War reparations were forgiven to Germany,that is not the same as forgiving debt that you asked for.And if the EU was taking payments like the allies were taking from the Germans 45-53 I am sure that in 8 years the EU would forgive their debt as well.

 

[Pauls' Revere]

http://finance.yahoo.com/news/greece-having-trouble-agreeing-bailout-150118420.html

Greece is having trouble agreeing to the bailout it agreed to


In the dawn hours of July 13, Greece agreed to a deal with its European creditors after several tense weeks that saw Greek voters reject a bailout in a referendum vote, Greece's finance minister resign, and Tsipras eventually take a worse deal than what he left on the table... and that Greek voters rejected.

That deal was seen as a failure, but it ultimately set the country on a path to unlocking its economy, which was frozen in the weeks following the June 27 announcement of a referendum on a new bailout, and it allowed Greece to get emergency funding to pay back the IMF and the ECB.

But the problem now is that the agreement Tsipras struck with Greece's creditors wasn't in itself a new bailout, but merely an agreement that laid the groundwork for negotiations on a new bailout. And now Syriza — and by extension the Greek government — can't get its house in order.


I give up...

 

[devil21]

nm

 

[Pauls' Revere]

Now, the Greek PM quits...

http://www.bbc.com/news/world-europe-34007859

On the job for only eight months. WTF?

Mr Tsipras, who was only elected in January, said he had a moral duty to go to the polls now a third bailout had been secured with European creditors.

The election date is yet to be set but earlier reports suggested 20 September.

@Devil21 - correct, looks like they made it to 20Sept.

 

[AngryCanadian]

What a fascist pro European Union puppet that Alexis Tsipras only removed himself from after lying to the Greek people when they said no he said yes to the bailout deal this after there are rumors of a military uprising agaisnt his party and similar offical who would follow in Alexis Tsipras footsteps.

 

[Pauls' Revere]

What a fascist pro European Union puppet that Alexis Tsipras only removed himself from after lying to the Greek people when they said no he said yes to the bailout deal this after there are rumors of a military uprising agaisnt his party and similar offical who would follow in Alexis Tsipras footsteps.

Makes me wonder the same, who's puppet is this guy? Would be interesting to see an investigation into how he got elected/selected a mouth piece for the IMF? (shrug) dunno but it stinks.

On another note I have no idea why Greece isn't in full blown civil war right now. What a bunch of shit to put the electorate through.

 

[Paul Or Nothing II]

Less free stuff, and their economy won't crash and burn.

This^

Socialists & communists deserve what they get.

 

[stuntman stoll]

I think some of the commentary going on here is kind of silly.
No, Greece will not have a gold back currency. That is something a responsible country with warm spot for Austrian economics would do. Greece is a land of mooching socialists.
I don't get the siding with Greece against Germany. With countries loaning to countries, I see it like the mob loaning money to the Crips, ie. no good side. However, the edge in opinion cannot be the debtor side. Default and bankruptcy are theft. You can claim predatory lending, but it is still theft to default on the principle, and buyer beware applies to financial products as well.

 

[devil21]

Greek drama is back. Default on bailout and Grexit?

http://www.express.co.uk/news/world/763969/Grexit-default-bail-out-ECB-loans-Greece-debt-crisis