Monday, May 03, 2010

Greece Debt Crisis

Eventually Greece has agreed to a bailout deal With EU and IMF. Have expected so, Germany wouldn’t let Greece collapsed or indirectly they’re declaring the death of EURO. The opposition to lend a hand to Greece was loud, over the fact that this EU member has not been abiding the rules and seriously corrupted. They would rather see Greece stepping out from EURO zone, would be good to both EURO and Greece himself, though this will depreciate EURO significantly in short term.

Greek Prime Minister said he would do anything to avoid the country going bankrupt. He urged Greeks to accept “great sacrifices.” The recently amended law allows Greece citizen to retire at as early as 50/55 yr old, with 80% monthly salary for 36 yrs. I don’t have to be an economist to tell this shit policy will bring the country economy to hell. Stern austerity measures must be enforced – to extend retirement age, raising VAT to 23%, freezing salary etc. Meanwhile lots of Greeks complained the 5% interest rate of the EU bailout is far too high. What do you want? There is no free lunch my dear.

Meanwhile Spain’s unemployment has reached the alerting 20%! Another bomb would be detonated anytime. The economy of Spain is the 4th largest in the EURO zone. The bailout would be much more costly than Greece. Hard to believe Europe economy is recovering yet.