New Home Owners And Snagging Forum
Investments => Financial Markets and the economy => Topic started by: The Prophet on February 29, 2012, 10:48:36 am
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The big banks lent Greece money. The bankers paid themselves large bonuses for getting the new business.
The Greeks spent it all but made it look like they were a better credit risk than they actually were.
But instead of letting Greece go under with the lenders losing their money, Europe bailed them out with more loans they could not pay.
Since the Greeks gained independence from the Ottoman Turks in 1828 they have been in default on their loans about 50% of the time.
The Greek middle class is being hit the hardest. The rich are protected as they own equities and have overseas bank accounts.
The poor have nothing to lose. But the middle classes are losing jobs, businesses, income and benefits.
With an economy in a downward spiral, even with the latest bail out and debt write-offs, how will Greece ever repay the loans, now regarded by S&P as less than Junk, with a falling economy.
It wont it will default.
Would Barclays take a haircut on 25% of a mortgage in arrears, then arrange a new loan on a lower rate, so the distressed unemployed homeowner in arrears can make the monthly payments? Of course not!
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The Greek problem isn't over by a long way. Not until their citizens start paying their taxes.
We should all 'vote with our feet' and boycott Greek holidays.