Greece bailout: Coalition fail to agree cuts

wellused

Wookster wrote: »

Someone needs to just put Greece out of its misery...

The Germans haven't finished with them yet and anyhow when they have they will home in on someone else to convert to austerity to keep the Euro low and aid the record German export market.

Mrs_Bones

The Germans have now said they want millions more in cuts by next Wednesday plus all these cuts and deals need to be put in law so they can not be overturned after the April elections.

It's starting to kick off again on the streets.

ILW

Mrs_Bones wrote: »

The Germans have now said they want millions more in cuts by next Wednesday plus all these cuts and deals need to be put in law so they can not be overturned after the April elections.

It's starting to kick off again on the streets.

Seems sensible, the Greeks have shown they are totally incabable of running their own economy, and the Germans just want to ensure that the billions they are handing over is not just being p1ssed up the wall.

wellused

It would have been more sensible not to have allowed the Greeks to join the Euro in the first place, or to have actually addressed the situation when it became obvious that they had conned their way in. But then I suppose that hindsight is a marvelous thing.

ChiefGrasscutter

Mrs_Bones wrote: »

The Germans have now said they want millions more in cuts by next Wednesday plus all these cuts and deals need to be put in law so they can not be overturned after the April elections.

This of course is the real problem.
Greece is not like a shire county of the UK when if things got really chaotic the UK Government has powers to simply dismiss the entire council and run it from London imposing outside supervisors of everything that went on in the county backed up by UK police/law enforcement.
Greece is a sovereign nation and any law can be overturned in the next parliament in the same way that any law in the UK could be overturned by a future goverment.
The Germans quite rightly want some sort of control over the way their money is used much like a bank in the UK would to a domestic borrower......but short of invading Greece and imposing control that way they can't.
That leaves the Germans with a real problem, which arose from ignoring the mantra that you cannot have monetary union without some sort of fiscal/political union.

wellused

So when Greece actually defaults will the other piigs see a run on their banks as their populations take fright and withdraw their savings? Greece or Germany who has who by the short and curlies?

pqrdef

ILW wrote: »

Seems sensible, the Greeks have shown they are totally incabable of running their own economy

Eurozone countries don't control their own economies. That's the problem.

ILW wrote: »

and the Germans just want to ensure that the billions they are handing over is not just being p1ssed up the wall.

A mate asked me to lend him some money once. Of course I was happy to help, but I needed to make sure I got the money back, so I told him he'd have to put the caxh in a safe deposit box and give me the key.

Never understood why he changed his mind.

ILW

pqrdef wrote: »

Eurozone countries don't control their own economies. That's the problem.


A mate asked me to lend him some money once. Of course I was happy to help, but I needed to make sure I got the money back, so I told him he'd have to put the caxh in a safe deposit box and give me the key.

Never understood why he changed his mind.

They decide on their own levels of public spending. No nation is forced to commit to way over what they can sustain.

ILW

pqrdef wrote: »

Eurozone countries don't control their own economies. That's the problem.


A mate asked me to lend him some money once. Of course I was happy to help, but I needed to make sure I got the money back, so I told him he'd have to put the caxh in a safe deposit box and give me the key.

Never understood why he changed his mind.

If you had lent him the money to pay his mortgage and he had instead blown the lot on a holiday, would you not have wanted some control before lending again?

Mr_Mumble

This gave me a chuckle, but if the EU/IMF took it seriously...
Reuters - Greek police union wants to arrest EU/IMF officials

wellused wrote: »

So when Greece actually defaults will the other piigs see a run on their banks as their populations take fright and withdraw their savings? Greece or Germany who has who by the short and curlies?

A default within the Eurozone isn't going to cause runs on banks and the possibility of Greece being ejected from the Eurozone still seems pretty slim to me. Greece has a whopping big card to play with the threat to leave the Eurozone. The single biggest Greek creditor is now the ECB. When you've got 45 billion Euros tied up in Greek bonds and are still hoping to get that 45 billion back - despite not having a greater legal right to that money than private creditors who're likely to lose 70%+ - then you'd best not push your luck too far.