The EU is under no obligation whatever to give their money to Greece
Quote:The EU is under no obligation whatever to give their money to Greece
Washington was not under any obligation to bail out New York either, either time we did it, but did out of self interest.
In all the political blame game of this week, one fact has been mostly overlooked: Seldom have macroeconomic difficulties been as persistently mismanaged as those of Greece over the past five years. Since the beginning of the crisis, Greece has performed markedly worse than the most of the hardest-hit crisis countries in the past half century - worse than Ukraine over the past decade (when it was confronted with all the well-known security issues in Eastern Ukraine and the occupation of Crimea by the Russians), worse than the economic-policy-pariah Argentina after its default in 2002 and worse than Burundi during its decade-long civil war in the 1990s and early 2000s.
Clearly, this dismal performance cannot be primarily blamed on institutional problems in Greece: Greek institutions might be weak, and corruption wide-spread, but would anyone seriously claim that institutional conditions in Athens are worse than those in Argentina in the 1990s or those in Burundi when Hutus and Tutsi killed each other by the thousands?
The mistakes in the Greek bailout programs are by now well documented: For a long time, the troika postponed a necessary debt restructuring. When the debt restructuring came, the troika did not allow public creditors to be included, so the Greek debt level remained unsustainable. The troika also badly underestimated the detrimental impact of austerity on Greek output. And it focused on labor market reforms when the real problem were vested interests and monopolies in product markets, cutting into Greek wages without really improving competitiveness and exports.
All this contributed to a continuous decline in GDP and a dramatic increase in unemployment.
Wondering, how/if Greece will get a new finance minister within hours ...
This does two things: it legitimizes the stance of the Greek government and it leaves the ball in Europe's court," ANZ Bank analysts said in a note. "Europe either folds or Greece goes bankrupt; over to you Merkel."
So far it's 60.3 % for NO and 39.7 % a YES vote, lt "Spiegel". So far, only 20 % of votes were counted.
The Greek are celebrating today, tomorrow they'll have a huge hangover.
I don't think that the common citizen understands the implication of a NO outcome.
Meaning, some folks are willing to bite their nose, to spite their face. I am not saying that that is the motivation for a NO vote; however, it has not been mentioned as a possible motivation for voting NO.
When some children do not listen to parental authority, it could be "for spite." Psychologically, Greece could be acting to the EU like a recalcitrant child?
I believe Greece is a basket case, and no amount of bailouts will save their economy. Germany alone can't save the Euro. It seems more bailouts to Greece will only exacerbate the Euro's inflation.
I have found it difficult to understand just what might have been the calculations of Tsipras & Varofakis in all this.