Originally Posted by Rrrainer
it's a bit like the question about chicken and egg regarding the greek state and who's to blame. the main reason for government largesse over the last 5 years was the fake boom that made them think economies across the globe were actually doing well. if growth rates had stayed the same there'd be no greek problem whatsoever.
anyways, the guys who come to the rescue are governments nonetheless, not the private sector. governments create a mess, governments bail them out - unlike last time, where the private sector created the mess and governments bailed them out.
It's not just a result of the global recession. Several governments, including Greece, were already running deficits before the markets turned against them. They took advantage of being part of a much stronger harder currency. Never would they have been able to borrow so much in Drachmas.
Asian stocks slide amid Greek debt crisis
"Greece's economic reforms that led to it abandoning the drachma in favour of the euro in 2002 made it easier for the country to borrow money."
Originally Posted by buddyholly
Christopher Hitchins comes to the defense of Germany in his column today. He says that Germany should not be victimised for the incompetence of the PIGS (Portugal, Ireland, Greece, Spain.)
I think it's Italy not Ireland. Or it could be both: PIIGS.
I've heard suggestions the Euro should be split in two. The Seuro for the Southern PIGS and the Neuro for the Northern FAGS.