The European Union is bailing out Greece. Fearing financial contagion, EU’s policy wizards decided to throw 100 billion euros at Greece, in tandem with demands for austerity.
New spending restrictions are tough enough to elicit the verdict of “savage” from Greece’s public employee unions. But are they “savage” enough?
The euros-to-the-rescue scheme occurred only after collapses of Portuguese and Spanish bonds. As mentioned last Friday, things aren’t good on Europe’s other southern peninsulas, either.
The “Domino Theory” remains a dominant metaphor. Once, we feared countries would fall like dominos to communism. Now, it’s like dominos into insolvency.
But propping up a tipped domino isn’t easy.
Drastic solutions, like expelling the duplicitous Greek nation-state from the EU? Not on the table. The apparent aim of the bailouts? Keep as many of the major players responsible for the fiasco in as good a shape as possible.
If, on the other hand, every politician were fired and every contract with unsustainable giveaways to public employee unions were dissolved as part of bankruptcy, might future policy makers be a little more cautious?
Meanwhile, the dominos keep falling. The day after announcing the bailout, the euro plummeted.
My question: What happens when “too big to fail” is applied not to a tiny country like Greece, but to the good ol’ US of A?
What if we’re too big to bail out?
This is Common Sense. I’m Paul Jacob.
12 replies on “Fearing Free Fall”
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more like ‘salvage’ instead of ‘savage’.
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The European Union will not have to fund a bailout, because the Greeks will not cut spending enough to qualify. The bailout offer primarily is a public relations ploy that the EU hopes will prevent further weakening of government bonds. (It doesn’t appear to be working: Spanish and Portugese bonds are in trouble, and German bonds are shaky.)
The other day Greek government workers went on strike, rioted, bombed a bank, and killed bystanders to protest government discussions of reducing the exorbitant pay and benefits of government employees. With such opposition, it is unlikely that an effective austerity budget will be proposed and followed.
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Let them go bankrupt, the best and quickest way back to solvency. Many government employees both in Europe and here at home are paid at least twice as much as they actually produce (if anything) not to mention retirement and health benefits. We are all broke and it’s past the time to pay the piper, government unions will inevitably have to be significantly cut back to at least the same level as private industries, not to mention that it takes 2 – 3 government employess to do what 1 will do in the private sector.
I’ve heard that the definition of insanity is doing same thing over and over again and expecting different results.
The so-called current Greek economic crisis is nothing compared to what will occur to every nation state that tries to solve their economic woes by bailouts.
These thugs that support these types of actions are creating a scenario that will ultimately collapse the entire world’s economies. They are Machiavellian meglamaniacs.
They need to be stopped now before their immoral and unethical goals are achieved. They will turn the world back to the stone age if they are allowed to continue.
Debunking their lies and using examples of success without initiating force is a way to enlighten many people to influence the populace how serious this situation is.
We need to rally and support positive actions in order to grow and avoid the total destruction that these elitist meglamaniacs are trying to achieve. It is an intellectual battle that will be won by the freedom oriented people if they do not give up challenging these thugs.