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Monday, June 06, 2011

The Greek Tragedy - Bailout Stillborn

Those in the EU/IMF who think that the second bailout offered to Greece has solved all of the problems facing both Greece and the Euro, may care to take their noses out of their ledgers and look at what is happening on the streets of Greece.

Reuters report the following:

"On Sunday night people from Athens and far beyond the capital crammed into the city's Syntagma Square to show they are close to the limit of their endurance.

"Thieves - hustlers - bankers," read one banner raised above a sea of splayed hands waved at the parliament building which overlooks the square, an offensive gesture in Greek culture.

Turnout was the biggest so far in a series of 12 nightly rallies inspired originally by Spain's protest movement.
"

The reality facing the politicians in both Greece and the EU, is that the Greek people will not tolerate any further austerity measures. Bailout number 2 is stillborn, one or more of the following events will now occur:

1 The Greek government will fail to pass the austerity measures.

2 The austerity measures will not be implemented as rigidly as the EU/IMF claim.

3 Greece will default.

4 Greece will descend into political and economic chaos.

Whatever happens, bailout number 2 in its current form will not work. Either the EU/IMF will have to throw more money at Greece (this time without any conditions), or Greece will leave the Euro.

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