Monday, June 22, 2015 – 08:30 a.m.
Will the economically-tiny nation of Greece default?
Is it already too late?
If it does. Will the event ripple through the financial markets?
One has to eventually find humor in the whole soap opera scenario.
In this instance, it isn’t the phrase “Robbing Peter to pay Paul” that applies.
It’s more like “Peter loaning, or should I say giving, Paul money to pay Peter back!
In other words the country is essentially broke.
Greece’s three primary creditors, The European Union (EU), The International Monetary Fund (IMF) and the European Central Bank (ECB) are all huddling this week to see if they can find any reasonable excuse to hand over more money, billions of euros, to the cash-strapped nation, which is in the throws of a fresh recession. In turn Greece, with the fresh money, will repay certain loans to the three groups, which hold Greek bonds, and make related interest payments on other Greek debt.
Funds would also be used to make payroll and pension payments.
The creditors, in return, want deeper cuts to government pensions and severe layoffs of government workers, which account for more than fifty percent of the country’s workforce.
The aforementioned cuts would obviously deepen Greece’s economic woes for years to come.
Here’s an illustration of just how pathetically silly the who kabuki dance is unfolding.
(Click image to enlarge)
Greece is an insolvent black whole, with other EU countries not far behind.
How much longer will the House of Cards stand?