Beware of Greeks Bearing Bonds

Beware of Greeks Bearing Bonds

As Wall Street hangs on the question “Will Greece default?,” the author heads for riot-stricken Athens, and for the mysterious Vatopaidi monastery, which brought down the last government, laying bare the country’s economic insanity. But beyond a $1.2 trillion debt (roughly a quarter-million dollars for each working adult), there is a more frightening deficit. After systematically looting their own treasury, in a breathtaking binge of tax evasion, bribery, and creative accounting spurred on by Goldman Sachs, Greeks are sure of one thing: they can’t trust their fellow Greeks.



By Michael Lewis•

Photograph by Jonas Fredwall Karlsson

October 1, 2010

http://www.vanityfair.com/business/feat ... nds-201010


Excerpt:

That was the good news. The long-term picture was far bleaker. In addition to its roughly $400 billion (and growing) of outstanding government debt, the Greek number crunchers had just figured out that their government owed another $800 billion or more in pensions. Add it all up and you got about $1.2 trillion, or more than a quarter-million dollars for every working Greek. Against $1.2 trillion in debts, a $145 billion bailout was clearly more of a gesture than a solution.

Love the thread title:

Greece, another example of Union power and sense of responsibility and socialism at its best. The country is broke, borrowing billions to remain a nation, and yet unions protest austerity measures??? I guess the host is still kicking so the parasites want to make sure they get the last of what is left without sharing. Truly disgusting mindset.

What our country really needs is to have every person in Congress, every governor, every mayor, and the POTUS be forced to take an educational course on the downfall of the Greek economy. Every one of our leaders should be schooled as to how Greece got into so much trouble and how that economic model failed so miserably. So many of their problems mimick ours yet our "leaders" seem to be wearing blinders and are not willing to make voters angry by doing what MUST be done.

I fear we will wait until it's too late, just like Greece.

CriticalBill wrote: What our country really needs is to have every person in Congress, every governor, every mayor, and the POTUS be forced to take an educational course on the downfall of the Greek economy. Every one of our leaders should be schooled as to how Greece got into so much trouble and how that economic model failed so miserably. So many of their problems mimick ours yet our "leaders" seem to be wearing blinders and are not willing to make voters angry by doing what MUST be done.

I fear we will wait until it's too late, just like Greece.

I hate to admit it but I agree with you. The temptation of well being without the attendant sacrifices is too great. And like Greece, once everyone gets it, no one wants to give it up. I pity our children and grandchildren who will have to experience this disaster in the making. My only contribution will be Teach, tech your children well. You who are on the road Must have a code that you can live by And so become yourself. Their children's hell will slowly go by.

Don't pick on Greece too badly, the same thing is happening here both nationally and on the state level, they are just the canary in the coal mine.

Understood. It was just a way of trying to get others to see where we are headed. But if you don't want to see, you will never accept the reality of the situation.

Science Chic wrote: I can't find the article now, but a while back I read something about Greece's problems being much deeper than fiscal - that they got themselves into the mess that they are in because of their deeply ingrained attitudes toward government responsibility, and more, in general. That it is a reflection of their culture, which sounded much different than ours. Alas, as I can't find it now, it doesn't help at all.

I did find this while looking for it though: what are your thoughts? I'm not sure I trust this author's conclusions...

http://pragcap.com/the-usa-does-not-hav ... ce-problem
THE USA DOES NOT HAVE A “GREECE PROBLEM”
By Marshall Auerback
14 May 2010

Indeed the culture expects to be taken care of even if the government is totally broke and borrowing money to make the payments. There is a total disconnect with reality. What I'm not convinced about is Americans having a different attitude. Who wouldn't want to be handed something for what appears to be free. It's not just poor Americans, but everyone if we are being honest. Of course those who accept that the funds need to come from somewhere, like everyone's paycheck may be more willing to look at reality. If you are very poor and can not afford a doctor when you are sick, then the prospect of free health care is totally seductive and once you have it why in the world would you be willing to give it up? Never. And that is perfectly understandable. But health care is only one issue. Saddle corporations with unionized labor that is unrelenting in its pursuit of benefits and you end up with products that cost so much you can't market them effectively. Greece is there now and I can see the US being led there now too. Let's face it, if our current administration moves against Boeing, we can see the end coming. No the US does not have a Greece problem yet, but we certainly are moving in that direction.

Part of the issue with Greece, Italy & Spain is before they tied themselves to the Euro, they would print money, and use it to pay off their bills. They can't do that anymore. So the limited control over thier money supply might convince these southern European countries to split off from the European Union, or at least their currency.
Great Britain looked at printing money to pay off thier debts and stimulate thier economy too, but found it would be of limited benefit because too many of thier entitlements have COLA built into them.