Greece secured further loans this week, but when they owe 160 percent of what they produce, how can they afford to pay it back?
Adam Creighton, an economist at the Centre for Independent Studies, says further loans are just delaying the inevitable — Greece should default now before the situation gets even worse. In today’s BTalk I ask him what that would mean? What happens when a country defaults on its debt?
The big question is, should Greece have ever joined the Eurozone? It really needs to devalue its currency to attract more investment, but it doesn’t have that flexibility whilst its linked to the Euro. Perhaps they should opt-out. Let’s hope they’ve got all those old Drachma’s stashed away somewhere.
The danger is, of course, if Greece was to leave, others might follow. Their crisis is not unique — gross debt for Ireland is 125 percent of GDP; in Portugal it’s 115 percent; there are a number of countries where it’s around the 100 percent mark.
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Getting More Out of LinkedIn
Cliff Rosenberg says you should proactively seek connections whilst users tell us how they use the site to their advantage.
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Where QE is failing – time for a people’s QE
QE is failing to drive growth. What’s the theory behind it and how should it be redesigned.
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Share in the bounce back
This morning @rodneyhobson picks shares and sectors that could do well in the bounce back we are set to experience. Plus, hotel quarantine starts today. Take our place in the border queue.
