Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
We're far beyond discussions of whether there should be debt forgiveness.

2 years ago, the Greeks were at 115% debt to GDP, but they were overspending by $30 billion. A quick adjustment of the budget deficit down to 5% (or $20 billion) would have turned them around in one fell swoop and those could have coupled with 5% cuts as in Portugal. Instead, they have cut by 19% or $56 billion and are now looking at 2% more cut in GDP (an additional $6 billion). And the bailout money paid out so far is around $80 billion. Do the math, it doesn't add up.

And now you know precisely why the troika wants an escrow account to funnel money directly to the banks in Greece's name. Greeks won't own that debt that's in an escrow account. Essentially, the troika has underscored to the Greek people that this money is not for Greece, but for the banks. The natural reply of the citizens is: "in that case...."

by Upstate NY on Sun Feb 12th, 2012 at 03:28:50 PM EST
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