Report: Greek crisis actually worse than feared

Originally posted by tHEpROGRESSIVE
reply to post by projectvxn

 

But cuts hurt people. People have bills to pay. They have debt. When you cut their pay then they cannot pay their bills. Why isn't it better to just agree that each government has failed financially and then just agree to forgive each others debts and start over. That way nobody gets hurt.

That doesn't make any sense.

debt forgiveness doesn't mean that no one loses. It means that the lenders eat the losses. Which could cause some serious repercussion.

Secondly. If you don't have a job and your only way of making money is to drain the government while sitting on your butt then it is your fault what happens when the government collapses.

Cutting government does not equal a lack of prosperity. If that were true then the depression should have lasted well beyond 1946 after the end of WW2. It didn't.

This is what happens when you decide it's a good idea to model a globalized world economy after "Jenga". Removing one more block without causing the tower to crash does not fix the problem. No matter how many blocks you manage to remove!! The blocks are already gone, in the form of CDO's and derivatives. We cant cheat and put the blocks back because no one knows where the hell the blocks are anymore. Overall it's a pretty solid system. Really great!

This situation really has to come to a head soon, every time that these bailouts occur more hidden "debt" rises to the surface to be bailed out yet again this situation will continue until WW3 kicks off into full gear then the books can be zeroed and debts cancelled IMHO.