Home
Articles
Photos
Interviews
Forums
New posts
Search forums
Georgia Tech Recruiting
Dashboard
What's new
New posts
New profile posts
Latest activity
Chat
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
General Topics
The Swarm Lounge
Greece Vote
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="TechnicalPossum" data-source="post: 159008" data-attributes="member: 1648"><p>Even if the spending was encouraged, at what point is the borrower (Greece) responsible for their own decisions? Just because someone will lend you the money doesn't mean you should bear no burden or responsibility if you take it and can't pay it back. </p><p></p><p>I think another factor in the whole issue with Greece was the structure of the economy. It is/was primarily a tourism based economy. With the 2008-2010 recession causing a decrease in disposable income throughout Europe, their economy was disproportionately harmed in all likelihood. But, with the weakness of the Drachma, it was still cost efficient for northern Europeans to vacation there. With the shift to the Euro, the cost efficiency for a Greek vacation diminished. </p><p></p><p>Additionally, there was already one haircut on the debt, 50% in the end of 2011 (citation - <a href="http://www.marketwatch.com/story/greek-bondholders-to-take-50-haircut-2011-10-26" target="_blank">http://www.marketwatch.com/story/greek-bondholders-to-take-50-haircut-2011-10-26</a>). I suspect the appetite for another one be limited, but will happen in the end. </p><p></p><p>Honestly, I am not sure what would be the best way to vote for long term stability. I think that a No vote could cause a withdrawal from the Euro and a high chance of causing hyperinflation if the Drachma was brought back as I can't see creditors placing much value on a new fiat currency which is being printed due to a debt crisis. There is also the fact that the debt is in Euros and not Drachmas, meaning that Greece would have the challenge of finding a buyer for the new currency in order to pay any of the debt. But, a Yes vote would not change anything unless the Greek government takes a similar approach as Cypress and places a levy on bank deposits to gather the capital needed to make the debt payment. Their economy has essentially stalled with no real plan to revive it. And I concur that a Yes vote would likely cause a snap election less than 6 months after the Greek national election.</p><p></p><p>The scary part in this is that Spain, Portugal, and Italy are not in particularly better shape.</p></blockquote><p></p>
[QUOTE="TechnicalPossum, post: 159008, member: 1648"] Even if the spending was encouraged, at what point is the borrower (Greece) responsible for their own decisions? Just because someone will lend you the money doesn't mean you should bear no burden or responsibility if you take it and can't pay it back. I think another factor in the whole issue with Greece was the structure of the economy. It is/was primarily a tourism based economy. With the 2008-2010 recession causing a decrease in disposable income throughout Europe, their economy was disproportionately harmed in all likelihood. But, with the weakness of the Drachma, it was still cost efficient for northern Europeans to vacation there. With the shift to the Euro, the cost efficiency for a Greek vacation diminished. Additionally, there was already one haircut on the debt, 50% in the end of 2011 (citation - [URL]http://www.marketwatch.com/story/greek-bondholders-to-take-50-haircut-2011-10-26[/URL]). I suspect the appetite for another one be limited, but will happen in the end. Honestly, I am not sure what would be the best way to vote for long term stability. I think that a No vote could cause a withdrawal from the Euro and a high chance of causing hyperinflation if the Drachma was brought back as I can't see creditors placing much value on a new fiat currency which is being printed due to a debt crisis. There is also the fact that the debt is in Euros and not Drachmas, meaning that Greece would have the challenge of finding a buyer for the new currency in order to pay any of the debt. But, a Yes vote would not change anything unless the Greek government takes a similar approach as Cypress and places a levy on bank deposits to gather the capital needed to make the debt payment. Their economy has essentially stalled with no real plan to revive it. And I concur that a Yes vote would likely cause a snap election less than 6 months after the Greek national election. The scary part in this is that Spain, Portugal, and Italy are not in particularly better shape. [/QUOTE]
Insert quotes…
Verification
Who was Georgia Tech's starting QB in 2023?
Post reply
Home
Forums
General Topics
The Swarm Lounge
Greece Vote
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.
Accept
Learn more…
Top