Monday, November 7, 2011

Greece behaves itself to accept EU bailout -- else be quarantined

So, the prime minister of Greece tries to broker “the people” by proposing a referendum, on whether existing Greeks will willing to have their pensions cut and even salaries cut so their country doesn’t go bankrupt, and retirees overseas don’t lose on their investments.  It sounds like a variation on the Leftist “class warfare”. No, it's more about "demographic winter". 

So the government falls, a new one must form, and apparently Greece will fall in line with what us investors in the rest of the world expect, to pay their bills.   The US  Dow was up slightly Monday morning.  Wall Street likes it, temporarily.  But the AP (David Randall) reports that investors are already that the Greece virus will spread to Italy, Spain and Portugal, story here

It might have been easier for Greece to leave the EU and go back to printing its own money, so it could become another Argentina, while quarantining itself.

I remember, when landing in Lisbon in April 2001 on a Europe trip, a cab driver’s saying that Portugal would benefit from the Euro with real estate development. Look at Spain and Portugal now. 

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