Greek Financial Crisis Thread

[Farnhamia]

So after a long time with various events happening back and forth, the thriller that answers to the name "Greek Financial Crisis" seems to be headed towards a conclusive, one-way destination. Although, I have to admit that I am a bit puzzled with the general disinterest of the NS community about the subject (since a disastrous outcome can hurt economically everyone in the Eurozone at the very least), I have decided after the last news update that the whole issue is to become "hot" again (in my opinion, it never ceased to be).

And what is that news update I mentioned earlier? Well check this out:

Greece debt crisis: Tsipras announces bailout referendum

Greece will hold a referendum on 5 July controversial bailout deal with foreign creditors, Prime Minister Alexis Tsipras has announced.

In a televised address, he described the plan as "humiliation" and condemned "unbearable" austerity measures demanded by creditors.
The Greek government earlier rejected the proposals, aimed at avoiding the country defaulting on its debt.
Greece has to make a €1.5bn ($1.7bn; £1.06bn) IMF debt repayment on 30 June.
In the speech, Mr Tsipras said: "These proposals, which clearly violate the European rules and the basic rights to work, equality and dignity show that the purpose of some of the partners and institutions was not a viable agreement for all parties, but possibly the humiliation of an entire people."

"The people must decide free of any blackmail," he added.

More at http://www.bbc.com/news/world-europe-33296839

I like this Tsipras guy, he has balls and I respect him for this. But apart from that, Greece enters on the most dangerous waters this turbulent country has ever sailed as of yet, regarding this situation. The government basically throws the glove to the Greek people and makes the Greeks directly responsible for whatever things are to come. The Greek people's answer regarding the referendum will be crucial for the future of the country and not only. We can only wait about the outcome of this referendum. However, we can also discuss and analyze the situation as it is and, why not, propose some well-constructed solutions about the ensurance of the European Union's future. One thing is for certain and we can all agree on: Greece belongs and has to stay into the European family regardless of the outcome.

Well NS, discuss.

Mod Edit: Title changed as the referendum has happened.

[Dooom35796821595]

Well at least when there is new election he can blame the people for the economic black hole Greece is in, that will be a great vote winner.

[Zebulor]

Greece already has too much austerity. I blame the creditors. Tjey are intransigent due to wanting Greece to fail because it has a leftist government that isn't willing to surrender the basic interests of its people. Maybe Grexit isnt so bad an option all things considered. But it could be avoided if the creditors could find the will to do so.

[MERIZoC]

Austerity is shit, there should be a non-conditional bailout. That's all that'll help the Greek economy get back on its feet.

[DBJ]

The greek fucked themselves by voting for Syriza, I don't have a lot of sympathy left for them. I'm glad the creditors didn't just cave in.

[Geilinor]

Austerity is shit, there should be a non-conditional bailout. That's all that'll help the Greek economy get back on its feet.

A non-conditional bailout is the best option at this point, but if this is rejected, there are no backups prepared.

[DBJ]

Austerity is shit, there should be a non-conditional bailout. That's all that'll help the Greek economy get back on its feet.

Uh, no. That wouldn't address any problems the greek economy is facing.

[Greed and Death]

Austerity is shit, there should be a non-conditional bailout. That's all that'll help the Greek economy get back on its feet.

A non-conditional bailout is the best option at this point, but if this is rejected, there are no backups prepared.

Loans always come with conditions.

Greece is free to reneg its debts and leave the euro at anytime.

[Geilinor]

A non-conditional bailout is the best option at this point, but if this is rejected, there are no backups prepared.

Loans always come with conditions.

Greece is free to reneg its debts and leave the euro at anytime.

A Grexit would be a disaster for Greece and harm all of Europe.

[Greed and Death]

Well at least when there is new election he can blame the people for the economic black hole Greece is in, that will be a great vote winner.

The vote is about blame yes.

Tsipras has said his piece against the bailout my guess is he and his party will be silent from here on out and they will let the more sensible parties control the dialog up to the referendum. this way he cane blame the inevitable on those parties or the people.

[Greed and Death]

Loans always come with conditions.

Greece is free to reneg its debts and leave the euro at anytime.

A Grexit would be a disaster for Greece and harm all of Europe.

Then I expect Greece to submit to EUs reasonable demands.

[Kalifati Arab shqiptar]

Loans always come with conditions.

Greece is free to reneg its debts and leave the euro at anytime.

A Grexit would be a disaster for Greece and harm all of Europe.

I don't think it would harm Europe as much as it would Greece. EU's pride would be harmed but nothing less.

[Chestaan]

A non-conditional bailout is the best option at this point, but if this is rejected, there are no backups prepared.

Loans always come with conditions.

Greece is free to reneg its debts and leave the euro at anytime.

Those conditions generally make financial sense though. Demanding that Greece further depress its economy is not only immoral but is also incredibly stupid. The austerity experiment has failed. Greece is worse off now than when it entered the bailout. An unconditional bailout is the only thing that should be expected.

Good on Tsipiras, for a while it seemed that he was going to be another wishy-washy lefty who was all talk but when push came to shove he would bend. This guy has balls and I'm glad that at least one world leader has decided to act in the best interest of the people.

[Dooom35796821595]

Loans always come with conditions.

Greece is free to reneg its debts and leave the euro at anytime.

Those conditions generally make financial sense though. Demanding that Greece further depress its economy is not only immoral but is also incredibly stupid. The austerity experiment has failed. Greece is worse off now than when it entered the bailout. An unconditional bailout is the only thing that should be expected.

Good on Tsipiras, for a while it seemed that he was going to be another wishy-washy lefty who was all talk but when push came to shove he would bend. This guy has balls and I'm glad that at least one world leader has decided to act in the best interest of the people.

And who's going to pay for the bailout?

[Chestaan]

A Grexit would be a disaster for Greece and harm all of Europe.

I don't think it would harm Europe as much as it would Greece. EU's pride would be harmed but nothing less.

Greece borrowed a huge amount of money from the EU, a default will mean that they will never get it back. It may also further reveal the cracks in the single currency and lead further to its demise. A long shot, but possible.

In any case, Greece should have defaulted at the start, or should have been given FAR more favourable bailout conditions. Iceland defaulted and they're over the worst long ago.

[DBJ]

Loans always come with conditions.

Greece is free to reneg its debts and leave the euro at anytime.

A Grexit would be a disaster for Greece and harm all of Europe.

A greek government that isn't willing to enact any of the necessary reforms is just as disasterous. The creditors aren't imposing those conditions out of malice.

[Kalifati Arab shqiptar]

I don't think it would harm Europe as much as it would Greece. EU's pride would be harmed but nothing less.

Greece borrowed a huge amount of money from the EU, a default will mean that they will never get it back. It may also further reveal the cracks in the single currency and lead further to its demise. A long shot, but possible.

In any case, Greece should have defaulted at the start, or should have been given FAR more favourable bailout conditions. Iceland defaulted and they're over the worst long ago.

EU shouldn't look weak in the eyes of Mother Putin and Red China!

[Chestaan]

Those conditions generally make financial sense though. Demanding that Greece further depress its economy is not only immoral but is also incredibly stupid. The austerity experiment has failed. Greece is worse off now than when it entered the bailout. An unconditional bailout is the only thing that should be expected.

Good on Tsipiras, for a while it seemed that he was going to be another wishy-washy lefty who was all talk but when push came to shove he would bend. This guy has balls and I'm glad that at least one world leader has decided to act in the best interest of the people.

The troika?

Remember, it is largely due to the conditions that the troika attached to the bailout that Greece is in such a sorry state now. Greece was already a mess, but the EU, IMF and ECB are the ones who really fucked up. Its their conditions that destroyed the Greek economy. Any bailout money Greece received should have been used to stimulate the economy and cause growth. The debt can be paid back when growth is large enough to do so. Fiscal consolidation during a recession is possibly the worst economic policy of all time.
And who's going to pay for the bailout?

[Chestaan]

A Grexit would be a disaster for Greece and harm all of Europe.

A greek government that isn't willing to enact any of the necessary reforms is just as disasterous. The creditors aren't imposing those conditions out of malice.

Do you honestly think that imposing more austerity will make Greece better able to pay its debts back? I mean it didn't work last time, or the time before that and possibly there was also a time before that as well.

[Greed and Death]

I don't think it would harm Europe as much as it would Greece. EU's pride would be harmed but nothing less.

Greece borrowed a huge amount of money from the EU, a default will mean that they will never get it back. It may also further reveal the cracks in the single currency and lead further to its demise. A long shot, but possible.

In any case, Greece should have defaulted at the start, or should have been given FAR more favourable bailout conditions. Iceland defaulted and they're over the worst long ago.

They have already forgiven half of Greece's debt any further default is not going to be worse than already experienced.

[DBJ]

Loans always come with conditions.

Greece is free to reneg its debts and leave the euro at anytime.

Those conditions generally make financial sense though. Demanding that Greece further depress its economy is not only immoral but is also incredibly stupid. The austerity experiment has failed. Greece is worse off now than when it entered the bailout. An unconditional bailout is the only thing that should be expected.

Good on Tsipiras, for a while it seemed that he was going to be another wishy-washy lefty who was all talk but when push came to shove he would bend. This guy has balls and I'm glad that at least one world leader has decided to act in the best interest of the people.

Greece has been on the way to recovery before Syriza took over. Syriza has destroyed all progress greece made within a few months.

[Greed and Death]

A Grexit would be a disaster for Greece and harm all of Europe.

I don't think it would harm Europe as much as it would Greece. EU's pride would be harmed but nothing less.

Giving Greece a break is far more dangerous than a Grexit, if they give Greece a break Ireland, Spain, Portugal and Italy will demand a break as well. And those could bankrupt the EU. Far better to write off the Greek Debt and watch the Greek Economy burn to the ground as they leave the EU.

[Chestaan]

Greece borrowed a huge amount of money from the EU, a default will mean that they will never get it back. It may also further reveal the cracks in the single currency and lead further to its demise. A long shot, but possible.

In any case, Greece should have defaulted at the start, or should have been given FAR more favourable bailout conditions. Iceland defaulted and they're over the worst long ago.

They have already forgiven half of Greece's debt any further default is not going to be worse than already experienced.

They defaulted on sovereign bonds, not the money the troika lent them. This time it will be the IMF, ECB and the EU that are hit. Obviously I disagree with you but only time will tell.

[Chestaan]

Those conditions generally make financial sense though. Demanding that Greece further depress its economy is not only immoral but is also incredibly stupid. The austerity experiment has failed. Greece is worse off now than when it entered the bailout. An unconditional bailout is the only thing that should be expected.

Good on Tsipiras, for a while it seemed that he was going to be another wishy-washy lefty who was all talk but when push came to shove he would bend. This guy has balls and I'm glad that at least one world leader has decided to act in the best interest of the people.

Greece has been on the way to recovery before Syriza took over. Syriza has destroyed all progress greece made within a few months.

Wtf?? Which Greece are you looking at because it sure isn't the same one as I am. Anywho, I'm sure you can source that Greece has been recovering?

[Kalatun]

They need to leave the EU, because the Euro has too much value for the Greek economy to handle. If they leave and re-introduce the Drachma, they can focus on promoting tourism in the islands. Although, European (specifically German) car manufacturers would be against a huge increase in the Euro's value after Greece leaves.