cnic

Greece and Italy Suffer: Let the Game of EU Chicken Begin

I am sorry George Kesarios, but this is a badly written and cynical article based on exaggerations. It is easy to be cynical and to sensationalize the situation. Your suggestion that the Greek And Italian governments will even consider leaving the Euro to print more Lira and Drachma is a short-term solution with no lasting positive effect. Staying in the Euro is a long-term option. What makes you think that the Italian and Greek government would even consider leaving the Euro to pay even higher spreads (which you yourself suggest will happen). Also how did you derive your figures of a 60% fall in bond prices? I even question your 800 billion figure. Did you pull these figures out of your behind? The Euro is benefiting counties with a high debt not straining them. Greece and Italy will most likely tighten and spend public money more efficiently and try to get more money from tax evaders. Greece is still planning to keep its budget deficit below 3% of GDP and even the most pessimistic economist still predicts positive growth for the Greek Economy in 2009 even though most of its partners are in recession. And lets not assume that the world will not be in recession forever. I am sure both economies will ride out the storm because they are in the Euro, especially considering their banks were not directly exposed to losses from mortgage products and will not need to borrow as much capital as you suggest.