Europe's Rescue Bubble

Europe's Rescue Bubble

Since the a first aid package of 110 billion euro was authorized in May 2010, Greece recently enjoyed an additional offer of 130 billion with the help of the complacency of the German parliament. It is clear that if Athens is short of cash, this is due to pride and prejudice: The Greeks cheated on their books to join the Eurozone, and the other European countries did not take adequate measures to ensure the long-term stability of their currency union – see this column by Paul Krugman. For better or for worse, each working Greek must now bear an additional debt of almost 49,000 euro from the rescue loans. Add that to the existing national debt and you get… an awful lot of money.

Read Full Article »
Comment
Show commentsHide Comments

Related Articles