Re: Re: Demise of the Euro closer? – Ignore this if it bores you



@zoro wrote:

So, will the politicians take fright of the electorate and bring the house down or will the ECB win and place the burden of the bailout on the taxpayers? Or will they both find a way to hide it all and put it off until another day? Is anyone interested enough to post a view or put up other links?

Either way it’ll be the tax payer who pays – either to bail out Greece so she doesn’t default, or to bail out the banks if she does. That’s the big outcome of the financial crisis: the realisation that the banks are backed by the tax payer. They are like nationalised companies, except they can control the money supply. A ludicrous situation.

But getting back to your question, I suspect they will keep “bailing” Greece out for the time being. The EU seems resigned to a “make it up as you go along” approach to the debt crisis (or any crisis for that matter) since any pre-emptive action would be seen as an acceptance of the problem. However giving further loans to a country with a cronic deficit & debt problem will not cure it. Greece will eventually have to default. Unfortunately they’ll keep putting it off until there’s no alternative, therefore prolonging the agony.