The worsening Greek economy means the country will need an additional €15B (on top of the...

The worsening Greek economy means the country will need an additional €15B (on top of the €130B bailout), says an EU official. The EU/IMF calculates the country needs to bring its GDP/debt level to 120% for a sustainable situation. Unexplained is how piling on additional debt (which is what the €15B would be) accomplishes that. "Get out right now."
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Comments (9)
  • Hobski
    , contributor
    Comments (49) | Send Message
    How is 120% Debt/GDP a sustainable situation for a country that has already defaulted 5 times in the last 200 years and has shown little interest in paying or collecting taxes? 20% Debt/GDP might even be a stretch.
    2 Feb 2012, 04:13 PM Reply Like
  • Good Captain
    , contributor
    Comments (463) | Send Message
    Perhaps the better question would be to know the identities of the fools who invested thinking they were investing in anything other than junk debt offering.
    2 Feb 2012, 10:42 PM Reply Like
  • youngman442002
    , contributor
    Comments (5123) | Send Message
    I do not have fancy degrees from expensive universities...but I know this deal stinks to high heaven..and should not be stepped on....what a joke these Politicians have become....what a joke..
    2 Feb 2012, 04:20 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4296) | Send Message
    Greece is a mere microcosm of what the U.S. has in store.
    2 Feb 2012, 04:41 PM Reply Like
  • Geoffrey Harris
    , contributor
    Comments (837) | Send Message
    The dow is holding steady. The S&P 500 is moving slightly higher and the Nasdaq and the Russel are moving significantly higher. Yet, they are all overbought. It looks like seasonality and sentiment trump news, and technicals now. Fundamentally the US has not changed over the last couple of years. Earnings are doing fine too.
    2 Feb 2012, 05:08 PM Reply Like
  • Teutonic Knight
    , contributor
    Comments (3579) | Send Message
    It's another Friday, and another Friday...Yeah, it will be done deal then, and another...
    2 Feb 2012, 06:16 PM Reply Like
  • SA reader
    , contributor
    Comments (176) | Send Message
    This just in! Greek bailout deal is very close and will happen in the next 3 minutes! In 3 minutes please repeat this phrase and add one more "very".
    2 Feb 2012, 08:29 PM Reply Like
  • TangoOscar
    , contributor
    Comments (367) | Send Message
    I heard California is going to be unable to pay expenses in March. Let's see what happens when the world's 8th largest economy ceases to function.
    2 Feb 2012, 09:10 PM Reply Like
  • Robin Hewitt
    , contributor
    Comments (5552) | Send Message
    "I heard California is going to be unable to pay expenses in March."


    Left off..."unless it takes action to prevent that". Which it did today:


    There's a lot of money sloshing around in California. It's not going broke by any means. There just need to be deeper cuts that are unpopular to make. I did the online "balance the budget yourself" exercise last June and was surprised by how many reasonable things could be done to balance the state's budget.


    The main difficulty faced last June was that it takes a 2/3 majority in the legislature to implement any form of tax increase. That meant a handful of Legislators could block that from being part of the solution and therefore deeper cuts were needed. (The CA Constitution has a balanced budget requirement -- which now has teeth thanks to Prop. 25.) The cuts were made but then a revenue shortfall ensued. There will probably be a few more iterations of this before the cuts become deep enough that people start asking for things like a one-time special tax to balance out the cuts. Note that the Legislators complaining about the current cuts are the same ones who blocked revenue alternatives from being part of the 2012 budget.
    2 Feb 2012, 09:51 PM Reply Like
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