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For massive corruption, you totally miss the picture. Look at the other way like banks such as Deutsche Bank and the likes which commit massive fraud and lend to countries very well knowing they can't pay back, make tons of money out of them and when those loans can't be paid they push austerity measures on people to the point were they commit suicide. Some banks which by the way were helped by european taxpayers. Deutsche bank alone has more than $75TRILLION in derivatives (unsecured loans). Basically they don't even have the money that they loan.
Wow. This is a really good point. Private US banks did the same to Latin American countries, in their time. Then they got mad when a new President of Ecuador (an economist) said, those are bogus loans, and refused to repay them. The banking industry has lost a lot of its integrity over the generations.
Try to tell that to your bank after you stop paying your mortgage: "You're strangling me with austerity! I know I owe you $300,000, but times are tough. Why don't you give me another $300,000 I'll never pay back so that things can be turned around?"
Nobody in their right mind would loan you more money.
Dude, they are out of money. Are you going to give them some?
But they have done just that. Give Greece more money (which not even them have since they are not solvent). Its a bit complicated but you should be able to figure it out! Its because if Greece goes down, those German banks will explode since they are so exposed with risky and unsecured loans. They save themselves by saving Greece but the offer to Greece is more austerity which can't last too long. There just isn't much more to squeeze out of people. This tragedy will be repeated again.........a Grexit is the way to go IMO if there is some kind of a safety net for Greece when it happens.
Funny thing is though when the banks are in trouble they do get payed out or bailed out by the government and taxpayers unlike your mortgage example! "Democracy" at its worse
During the last recession, the GDP in the U.S. declined in 2009 only about 2.6%. In Germany it declined about 5.6%. But the recession had some severe effects in the U.S. That wasn't the case in Germany, while the decline in GDP was much stronger. I wouldn't be surprised if the GDP figures in the U.S. or in the UK are largely overestimated.
Germany, the US and the UK have self-sustaining economies. The Greek economy was a bubble largely funded by debt. That's why Greek GDP shrunk so much - it has much less to do with austerity.
Germany, the US and the UK have self-sustaining economies. The Greek economy was a bubble largely funded by debt. That's why Greek GDP shrunk so much - it has much less to do with austerity.
I would describe it a little bit difference. I agree with the bubbled economy in Greece, but I think the austerity was the reason why this bubble almost completely disappeared. The austerity was not the reason why the bubble popped. Of course the austerity was the major reason for the economic downturn. But it was necessary to get the country back on track. It was the aim to reduce the current account deficit. That was successful. A balanced current account is the main requirement to reduce the indebtedness of Greece. The severe current problems are mainly a result of the chaotic new government in Greece. It would be by far not that worse if the Greeks had kept their old government.
Of course the UK is not Greece, but I wouldn't say that the UK is a self-sustaining economy. Their current account deficit is way to high. If the UK had to balance their current account in just a few years, it would get similiar problems like Greece. Without all those imported goods the retail industry in the UK would collapse. The UK isn't able to provide its people with the needed goods.
The U.S. had made big improvements by reducing its current account deficit. Mainly due to the fracking boom and reduction in private household spendings. The private household debt in the U.S. is falling, mainly because of the relatively low number of new constructed homes.
For me it seems clear that there must be a huge adjustment in the UK. The constantly rising current account deficit isn't sustainable on the long run.
But they have done just that. Give Greece more money (which not even them have since they are not solvent). Its a bit complicated but you should be able to figure it out! Its because if Greece goes down, those German banks will explode since they are so exposed with risky and unsecured loans. They save themselves by saving Greece but the offer to Greece is more austerity which can't last too long. There just isn't much more to squeeze out of people. This tragedy will be repeated again.........a Grexit is the way to go IMO if there is some kind of a safety net for Greece when it happens.
Funny thing is though when the banks are in trouble they do get payed out or bailed out by the government and taxpayers unlike your mortgage example! "Democracy" at its worse
That's just not true. The German banks have already reduced the Greek loans to nearly zero. The Deutsche Bank is exposed to Greece with just about €300m and the Commerzbank with about €400m. The public KFW bank holds about €15bn Greek loans. But this bank is public and cannot collapse. It would just increase the German indebtedness by €15bn.
That's just not true. The German banks have already reduced the Greek loans to nearly zero. The Deutsche Bank is exposed to Greece with just about €300m and the Commerzbank with about €400m. The public KFW bank holds about €15bn Greek loans. But this bank is public and cannot collapse. It would just increase the German indebtedness by €15bn.
OMG Why is there growth in the UK? Importing more goods, that leads to added value in the retail industry. The UK has by far the biggest current account deficit. Greece had also huge economic growth before 2009. Growth through importing more and more goods that will lead to huge amounts of added value in the retail industry.
Doesn't matter why, how, when or where, the bottom line is the UK's economy is doing quite well, Greece is on its knees, how you can say that economically they're the same is ridiculous!
Mind you its compared with Greece during the crisis. Finland will be joining the club soon
"The weakest economy in the eurozone this year (2015) might not prove to be Greece or Portugal, but Finland. The Nordic country is entering its fourth year of recession, with output still well below its 2008 peak.".........."“The public finances are completely screwed, it can’t go on like this,”"
Funny that you see Finland so perfect, thank you very much...I dont because there is not a single, perfect country on this planet.
One thing is sure, when troubles comes (And time to time they will) we will not burn our houses/cars/what ever.
This nation has always solved problems together and so it will happen again.
Your message is that because Finland is now having bad times, we should take more loans and give then give that money away?
Also you are saying that EU-sanctions, what has done lot of harm to the economy of Finland, are caused by Finns?
Doesn't matter why, how, when or where, the bottom line is the UK's economy is doing quite well, Greece is on its knees, how you can say that economically they're the same is ridiculous!
"The number of Britons living in poverty has more than doubled over the past 30 years, a report has revealed. About one in three UK families now live below the breadline, despite the British economy doubling in size over the same period.
The UK’s largest ever study into poverty in the country has urged the government to take measures to tackle growing levels of poverty. The Poverty and Social Exclusion in the United Kingdom (PSE) project, led by the University of Bristol, has revealed the wealth gap between the haves and the have-nots in the UK is widening still further.
Almost 18 million people are unable to afford adequate housing, while one in three do not have the money to heat their homes in winter."
Wow. This is a really good point. Private US banks did the same to Latin American countries, in their time. Then they got mad when a new President of Ecuador (an economist) said, those are bogus loans, and refused to repay them. The banking industry has lost a lot of its integrity over the generations.
Right. Never mind all the phony economic statistics Greece conjured up, blame the victim.
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Why is there growth in the UK? Importing more goods, that leads to added value in the retail industry. The UK has by far the biggest current account deficit. Greece had also huge economic growth before 2009. Growth through importing more and more goods that will lead to huge amounts of added value in the retail industry.