Tuesday, February 21, 2012

Greece: Initial Response to the Latest "Kick of the Can Down the Road"

The eurozone has acted.

Greece is going to postpone bankruptcy for a while longer as it was given 130 billion euros to help it cover, among other things, debt coming due in March. 

Problems still remain.

First, Greece is still insolvent.

Second, Greece still has major structural problems in its economy and society.

Third, Greece is in a severe recession.

Fourth, the eurozone is in the midst of a recession.

Fifth, 90 percent of the holders of Greek debt must sign up for the bond swap.  If they don’t there may be severe legal problems.

Sixth, the Greek government must still implement the policies and programs required by the bailout plan.

Seventh, Greek society must hold together.  The question still remains about how the Greek people will “suffer” the policies and programs required by the bailout plan.

Eighth, elections for a new Greek government will be held in April.  There is uncertainty about what will result from this election. (http://seekingalpha.com/article/374631-liar-liar-pants-on-fire-the-greek-case)

Ninth, there is concern over what is going to happen in the Middle East.  The focus is on Iran, Israel, Europe, and the United States.

Tenth, enough said, given all the other problems and uncertainties in the world today.

Bottom line: the major issues outstanding have not been dealt with; there is little or no confidence in the officials in charge; and the world needs to move on but still has the Greek problem to deal with.

1 comment:

  1. This post is a continuation of my previous blogsite on Blogspot: http://maseportfolio.blogspot.com/.
    My blogs no longer appear on this old site and I cannot access them in any way. Nothing that I tried to re-activate my old blogsite worked and I could get no help from Google or Blogspot, itself. So, you can access my blog going forward here and then link to my old site where there are 650 posts beginning in February 2009. Thanks!