When you cut a relationship with an old girlfriend, you better do it short and quick. Same here, as for month on in, Greece has been on live-support and getting worse. With a contracting economy, a recession in full bloom, unemployment rampant and out of control, strikes happen daily, it is hard to see how Greece can pull out of the doldrums?
Reality should set in, make a short cut with short pain. But get it over with. The 2010 austerity measures, imposed by the European Union as a condition to getting a 1st tranche loan, are not working and Greece is tanking fast.
Within the 1st week October, Greece has to come up with an interest payment on the 1st tranche, agreed to last year. The country does not have it. Meantime, an 8 billion Euro installment loan, [approved beginning this year (in a 2nd tranche), is “held up” (by European Central Bank authorities) due to uncertainty surrounding actual austerity implementation by Greek authorities. EZB finance ministers want to see confirmation, the austerity program is in place and working?
[Fat chance of seeing that]
To shrink Greece’s economy even more, will likely result in a revolution. It is that close.
The U.S. is the largest contributor to the IMF (Int’l Monetary Fund) and will have to write off billions (another Solyndra) given to the IMF. Second, every large U.S. bank with a European operation made loans to Greek companies and that money will be “puff” gone, impacting financial statements at the U.S. banks. Seems, they (banks) learned nothing from the Lehman episode.