There is no real solution for Greece. They are bankrupt and their economic foundation is rotten. They have bred a society that wants generous benefits on the one hand, and on the other, cynical producers who don’t want to pay taxes. They are similar to Eastern Bloc countries post-Soviet collapse. They [...]
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While the headlines say that a new agreement has been reached by Greece’s political leaders, you should be guided by their past behavior. In other words, it ain’t over ’til it’s over. From Bloomberg: Greece will pledge permanent spending cuts, including lower pension payments and a 20 percent reduction in the minimum wage, as the [...] “70,000 Greeks Protest Cuts, Clash With Police” The above is the Bloomberg headline for Greece today as the unions called for massive, countrywide strikes to shut down the country in protest of further austerity cuts by the government. The Wall Street Journal is reporting that there are 100,000 protesters. The parliament has to vote on further [...] Today’s market collapse is reacting to a continuing stream of bad news, but the capper today was the Eurozone Market PMI (Purchasing Managers Index) which fell below the 50 mark for the first time since July, 2009. Anything below 50 indicates declining activity. Add to that World Bank President Robert Zoellick’s comment that the world’s major [...] |
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