Saturday, February 20, 2010
Let the Greeks ruin themselves
Germany is known to have the biggest economy in Europe. That is why all eyes are focused on Germany to bail Greece out. Greece is having an immense amount of trouble right now and it all started because they have been concealing their bad financial situation. If Germany helps Greece out the currency will suffer.
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Germany seem to be reluctant in rescuing the plunging Greek economy. Germany is skeptical because Greek runs a budget deficit of around 12% of GDP which is too high. And if Germany doesn't come into rescue the government might go for Seignorage; which will be good to some extent but later will increase the problem. At this time the best thing to do is get support from its' fellow EU nations. Otherwise Greece will be in serious trouble.
ReplyDeleteThe Greeks should be talking with all of the EU nations, to see what can be done about their situation. The burden of picking up the Greeks shouldn't just be placed on the Germans, and it will be interesting to see what kind of pressure the Germans come under as this situation gets worse.
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