It is pretty clear that the Greek cannot go on spending like they do. They have to cut down, because there is no money to spend.
On the other hand, it is very unlikely that the recent austerity measures will actually help their economy. They will slow it down. The measures will lead to increased poverty and probably to increased unemployment. Having a lot of unemployed Greek will not help any economy - the Greek or any other one.
Now, as the Greek parliament accepts the austerity measures that will sink their economy, the stocks of the world go up. Is that really the right direction?
Scylla and Charybdis. Damned if they do and damned if they don't.
I have a feeling that the stocks go up not because the investors think what is happening is good. Perhaps not even because it is the lesser of two evils. But because now, at least, there is less uncertainty.
On the other hand, it is very unlikely that the recent austerity measures will actually help their economy. They will slow it down. The measures will lead to increased poverty and probably to increased unemployment. Having a lot of unemployed Greek will not help any economy - the Greek or any other one.
Now, as the Greek parliament accepts the austerity measures that will sink their economy, the stocks of the world go up. Is that really the right direction?
Scylla and Charybdis. Damned if they do and damned if they don't.
I have a feeling that the stocks go up not because the investors think what is happening is good. Perhaps not even because it is the lesser of two evils. But because now, at least, there is less uncertainty.
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