Quote:
Originally Posted by Hugh
Agreed...
But the problem is that the Greek Government passed laws making the Greek banks loan the Government money at low interest rates...
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Indeed, a long time ago, and thus all is entwined.
We actually have similar requirements that some investment vehicles must invest in UK gilts to an extent I believe.
Regardless, it's probably time that Greece is cut loose. There is no happy ending here, the multiplier from the previous austerity has been terrifying, and their debt to GDP ratio just keeps going up. A primary fiscal surplus is worthless if that ratio keeps rising.
They're suffering bitterly too from deflationary pressures. Greece really could benefit from a big blast of inflation.