FT.com: A greek crisis coming to America (loans, union, pension)

[k374]

FT.com / Comment / Opinion - A Greek crisis is coming to America

Good job Obama, keep spending your brains out!

[Neuling]

I can't read the article, I would have to subscribe, register or whatever. Can't you give us a brief summary of its content? Just 2 or 3 sentences

[70Ford]

You linked us to a pay site.....so we can't even read the article. Unless we want to subscribe to FT.com

[StoneOne]

FT is well worth subscribing to.

[dougie86]

The article is still available online if you google search the title
"A Greek crisis is coming to America"

Hope this link is working
http://www.ft.com/cms/s/0/f90bca10-1679-11df-bf44-00144feab49a.html

edit:
Briefly it is issues centering on PIIGS (Portugal, Ireland, Iceland, Greece, Spain) in the news for the last few days.
Latest ... Germany and France promise to help Greece.

[Snort]

I interpret this to mean that we better cover our behinds?

[wanneroo]

If you go to the FT main page, the link is clickable through there.

Interesting article.

I have believed for several years now and I never hear it elsewhere, but I believe the GFC was brought on by an entitlement crisis, not some of these other issues. Unsustainable government programs giving houses away with little down and super low interest rates to people that had no way to pay on the loans. Unsustainable massive public sector pensions. Bloated "all you can eat" healthcare given away to unions by companies and government. Paying people to sit on their porch while they enjoy subsidized rent, welfare checks and even government programs for free phones and cars. Now we have all sorts of businesses getting "bailouts" as well.

I think that is what the crash is all about and the accompanying huge sum of deficits that are being run up. We are taking out more than we are paying in. People want all these "programs" but we just don't have the money anymore. The next 10 years will be interesting as reality hits home for a lot of people that expected to suck on the taxpayer teat for all eternity.

Greece is first on the mark to fall, but I think Spain and Portugal are time bombs. One can argue those bubbles have already popped.

[floridasandy]

it looks like the greek crisis is coming to greece:
Angela Merkel dashes Greek hopes of rescue bid | Business | The Guardian

[bale002]

I lived in Greece four about four years: at that time the budget deficit was around 3% of GDP and, perhaps not by chance, EU subsidies to Greece amounted to around 3% of GDP. In short, the EU, mainly Germany, paid the Greek government to operate. In return, the men in power in the Greek government stole from the EU, mainly the Germans, some of whom have vacation and retirement homes in Greece. Get it?

Greece is on the periphery of Europe, its main strategic function is military vis-a-vis Russia and the Middle East, and, in part, itself to prevent the emergence of a unified Balkan power in between the two (think Byzantine and Turkish Empires), while its populace and cultural legacy are subsidized as a sop.

It is small relatively potatoes.

The real economic issue here is that the countries of early industrialization, i.e., core Europe, the US, and Japan, have been in relative decline and now risk absolute decline with respect to countries like China, India, Brazil and others.

This decline will continue until the people grow out of their adolescent feeling of entitlement and realize that they must go back to the basics like making their own shoes and socks, for example. And they must pressure the ruling classes to respond.

Can you imagine a vitiated adolescent, who views the world as unjust, asking his parents for responsibility and hard work?

Meanwhile market speculators take their pick of the month, then the US, now Greece and the eurozone, tomorrow perhaps the UK or Japan, then the US again, and so on, like ducks in a row.

The Greek problem right now is a ruse to shift attention away from the really big potatoes, like the US and UK, though to be sure, the dynamics in those cases are different because they "print" their own currencies: I don't know, maybe Ms Merkel is holding out for a big house by the sea.

Anyway, there will be further rounds and gutsy traders profit from this.

[floridasandy]

it isn't just greece-but all the PIG countries, or PIIG countries if you add italy. germany can't afford to bail out everybody.

for the record, FT is free if you sign up.