Comments on: Good news from Hungary A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 By: nbywardslog Tue, 20 Jul 2010 06:46:30 +0000 A very balanced piece – and probably right. But beware the Party now in power…they are populists of the worst kind. It was a smart(ish) move of the IMF to fire a shot across their bows…I sense they figured a battle now might obviate a war later.

I do note, however, that the IMF sent a not entirely coded message to the G20 over the weekend, the gist of which was ‘we need more money if we’re gonna get through this minefield’.

Tell me, is it me – or is a deadly combination of greed, stupidity, speed and complexity now making investment analysis something of a mug’s game? This might apply…. stment-object-lesson-in-why-small.html

By: Rikh Tue, 20 Jul 2010 06:41:18 +0000 1. In several ways I am not really pleased with this Hungarian government in this respect,
2. First they make now for the second time negative noise in the EU while that area as a whole should be stabilized.
3. Second they promissed things any realistic person would know they could not keep.
4. At the end of the day they will have to give in anyway.
-They have reserves till november approx. if the donot have money before that they will be in deep trouble.
-EU donor countries cannot explain this (agreeing with Hungary) to their voters. Same IMF position vis-a-vis other rescue countries. So EU and IMF will not give in, why fight if you know you are going to loose.
5. It shows again that poorer countries only like solidarity when it is going into their direction, like the Slovakian approval drama.
6. It is opening up because of this a lot of discussion on voter level in EU-donorcountries about several money flows, which could never be possitive for countries like Hungary.
7. So the only 2 reasons they could be doing this are: lack of economic common sense and a show for their voters or a combination thereof.
8. Especially the second reason again could make their long term position as a considerable EU nett receiver more difficult. The North’s voters start to have enough of all kind of money drains in other (easy predictable) countries especially as they are already paying 45-50% of their income on tax and likely have their pensiondate moved to 70. The more they are remembered thereof the more likely changes will happen.

By: tkotrade Tue, 20 Jul 2010 00:44:08 +0000 I fail to see how backing away from a loan that can stabilize the country is a good move. Perhaps they should follow the guidelines and reduce their debt as a requirement for seeking more help. What is wrong with the
IMF setting a guideline?

By: greg101 Mon, 19 Jul 2010 23:41:50 +0000 Sorry, Felix, your info is inaccurate. The new Hungarian government is far from “brand-new and wholly inexperienced”. They were in power between 1998 and 2002 with the same prime minister and economy minister. Their problem is not inexperience, but a baggage of demagogue undermining of their predecessors, claiming that austerity was unnecessary and tax cuts should be brought in instead to jump-start the economy. Now they are in a bind, because the naive electorate actually expects them to do what they preached.