Food & Drink1 min ago
Who's profited from the Euro crisis?
3 Answers
I'm a simple man. can anyone explain this simply, please?
All the euro pain is blamed on "the markets" which for instance are forcing Greece into a corner.
In a market, someone buys and someone sells.
If someone loses, someone else gains.
So who are the people who are gaining? They must be worth literally tens of billions.
Simple answers, please, in 50 words or less ...
All the euro pain is blamed on "the markets" which for instance are forcing Greece into a corner.
In a market, someone buys and someone sells.
If someone loses, someone else gains.
So who are the people who are gaining? They must be worth literally tens of billions.
Simple answers, please, in 50 words or less ...
Answers
Best Answer
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For more on marking an answer as the "Best Answer", please visit our FAQ.If the current plan goes ahead the “winners” will be some of the Greek people. The country has borrowed enormous sums of money since they joined the Euro at rock bottom interest rates – something around a fifth of the rates they would have paid if they had remained outside the single currency. About 50% of these loans are due to be written off. The funds have been used extravagantly to fund an enormous expansion in public sector jobs. These jobs have attractive salaries and very beneficial pension arrangements (Greek teachers, for example, retire before age 50 on about 80% pension). There seems to have been no appreciable benefits for other Greek people.
The losers will be (a) the people of Greece not employed by the State; (b) the shareholders (and possibly the depositors if they go skint) of the banks who have foolishly leant them much of the vast sums that have been squandered; (c) the taxpayers whose governments have contributed to the various “bailout” funds (the “European Stability Fund”, the IMF and so on).
If Euro politicians contrive an escape from this latest crisis it will not be the end. More “loans” will be required which the Greeks have not a cat in hell’s chance of ever repaying. Europe (and indeed the rest of the world) needs to decide whether it will continue to fund Greece’s unaffordable profligacy or if they should be allowed to go skint, revert to the Drachma, allow it to devalue to an appropriate level and encourage people to go there for cheap holidays to help them balance their books properly.
Sorry, it’s about 270 words, but as you can imagine this is not something that can be summarised quite so briefly as you would like.
The losers will be (a) the people of Greece not employed by the State; (b) the shareholders (and possibly the depositors if they go skint) of the banks who have foolishly leant them much of the vast sums that have been squandered; (c) the taxpayers whose governments have contributed to the various “bailout” funds (the “European Stability Fund”, the IMF and so on).
If Euro politicians contrive an escape from this latest crisis it will not be the end. More “loans” will be required which the Greeks have not a cat in hell’s chance of ever repaying. Europe (and indeed the rest of the world) needs to decide whether it will continue to fund Greece’s unaffordable profligacy or if they should be allowed to go skint, revert to the Drachma, allow it to devalue to an appropriate level and encourage people to go there for cheap holidays to help them balance their books properly.
Sorry, it’s about 270 words, but as you can imagine this is not something that can be summarised quite so briefly as you would like.
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