Comments on: Five ways to correct the Greek debt crisis http://blogs.reuters.com/great-debate/2011/05/03/five-ways-to-correct-the-greek-debt-crisis/ Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: breezinthru http://blogs.reuters.com/great-debate/2011/05/03/five-ways-to-correct-the-greek-debt-crisis/#comment-34690 Thu, 05 May 2011 07:40:00 +0000 http://blogs.reuters.com/great-debate/?p=9128#comment-34690 Quote from the article: “In the case of Greece today, too much of the debt is being transferred from creditors to the public sector. As a result, too many tax payers and public institutions will end up taking the hit that many creditors should have taken.”

This is the primary problem of economies around the world as evidenced by Iceland, Ireland, Portugal, Spain and even America, but Greece’s problem is far greater.

Greece’s underlying fundamentals are so wretched that they have zero chance of achieving economic viability within the next ten years.

This epic drama can only end with loan forgiveness or default… and the end draws ever closer.

I’m astonished that the Eurozone and other investors have been willing to toss billions of Euros into Greece’s black hole of a deficit every time the bills come due.

Surely, most of those investors are sophisticated enough to know that Greece isn’t capable of generating enough income to actually repay all of that money. The risk of default is virtually 100%; it’s just a matter of when.

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By: FBreughel1 http://blogs.reuters.com/great-debate/2011/05/03/five-ways-to-correct-the-greek-debt-crisis/#comment-34680 Wed, 04 May 2011 17:34:33 +0000 http://blogs.reuters.com/great-debate/?p=9128#comment-34680 You see Mr. El-Erian, from the responses on the article, there is a new thinking which is a little more ethical and tougher then before. That is because hard-working people have been tolerant, have been generous, have been paying their taxes and have been providing all this. But the fun is over and Keynes is dead. Who-ever wants to survive in politics better understands this. For instance in Germany, Mr. Schäuble was not doing his party a favour by telling Greece was going to restructure. CDU already knows the outcome of the elections next year, which will be bad, very bad. Therefore, you will not find much support for your plan, maybe in a niche with old left-wing parties, or with the former communist new EU entrants. Greece is going to pay, and if they go default, or have to leave the EU, do you think we mind ? No. It is new economics, and it better then the way it was, simply because it supports not just the weakest but also the honest. Greece still has a chance, and they have the next ten years they are worthy of being part of such an exclusive club as Europe. We have bought them the time to prove it.

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By: FBreughel1 http://blogs.reuters.com/great-debate/2011/05/03/five-ways-to-correct-the-greek-debt-crisis/#comment-34678 Wed, 04 May 2011 16:31:58 +0000 http://blogs.reuters.com/great-debate/?p=9128#comment-34678 Good solution, but it promotes that the bill will end with the wrong taxpayers. This cannot be the case. The Greek have gone to far, the government has corrupted the data. Ever heard of moral hazard ? Well, here it is written all over the story of Greece.
Here is another solution that is more ethical:
– The Greek increase their pension age to 69, like in all ‘rich’ European countries.
– The Greek will start paying taxes, like in all ‘rich’ European countries.
– The Greek will repay 100 % of their debt, like in all ‘rich’ European countries.
– The Greek public servant will lose their privileged jobs, like in all ‘rich’ European countries.
Only then will the wound of distrust that has been created will be cured. Honesty takes longer.

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By: DrJJJJ http://blogs.reuters.com/great-debate/2011/05/03/five-ways-to-correct-the-greek-debt-crisis/#comment-34677 Wed, 04 May 2011 16:25:24 +0000 http://blogs.reuters.com/great-debate/?p=9128#comment-34677 We all seem to be real good at asking for more money/what our country can do for us, and very poor when it comes time to cut spending/compensation!
Seems a flat/fair type tax might work best in Greece-too many under the table! Same with the US!

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By: pavlaki http://blogs.reuters.com/great-debate/2011/05/03/five-ways-to-correct-the-greek-debt-crisis/#comment-34673 Wed, 04 May 2011 13:37:56 +0000 http://blogs.reuters.com/great-debate/?p=9128#comment-34673 The most important fact is that Greece fudged it’s data to join the Euro and has not and will not be able to meet the criteria of membership. Greece is not alone in this respect. There needs to be a recognition that the ‘one size fits all’ economic policies of the Eurozone are a mistake. To continue to impose them on the ‘southern’ countries is to condemn them to years of austerity. They need to devalue.

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