Posted to The Age (4/11/2011) on 4/11/2011 at 2:32 PM
Commenting on "Markets Live: Shares rally as Greece backs down"
http://www.theage.com.au/business/markets-live-shares-rally-as-greece-backs-down-20111104-1myk8.html
People do believe in fairy god mother. How likely will Greece get out of their financial trouble after the bail out? How can years of reckless, mismanaged economy and short-sighted industrial modification be fixed with the stroke of a pen, or some loud verbal threats by their neighbours?
Greece faced economic hardships and defaulted on its loans in 1826, 1843, 1860 and 1893 (Wikipedia). Greeks are supposedly one of the most hardworking after the South Koreans. However, the number of hours cannot be translated to efficiency or effectiveness.
Loss of competitive edge in manufacturing to more efficient and cheaper countries costs export income. Greece also relies heavily on service industries including tourism, which prosper during economic good times. Not unlike many other countries, the hosting of the Olympics Games resulted financial losses in the millions. All these create huge unemployment, and no matter how big the bail out, the situations will be difficult to reversed.
Greece has to default and free itself from the Eurozone and start afresh. Change experts know that change can only be achieved effectively if one is prepared to do so without the external pressure. Greece citizens have to bite the bullet and learn to live within their means.
Germany is flexing its muscle to get this finished and done with, because it has a lot more to lose if Greece were to go bankrupt and leaves the clan - it will affect the Euro currency, and make export expensive.
The rise of unemployment is not a unique Grecian phenomenon. It is a lesson Australia must take note.
Commenting on "Markets Live: Shares rally as Greece backs down"
http://www.theage.com.au/business/markets-live-shares-rally-as-greece-backs-down-20111104-1myk8.html
People do believe in fairy god mother. How likely will Greece get out of their financial trouble after the bail out? How can years of reckless, mismanaged economy and short-sighted industrial modification be fixed with the stroke of a pen, or some loud verbal threats by their neighbours?
Greece faced economic hardships and defaulted on its loans in 1826, 1843, 1860 and 1893 (Wikipedia). Greeks are supposedly one of the most hardworking after the South Koreans. However, the number of hours cannot be translated to efficiency or effectiveness.
Loss of competitive edge in manufacturing to more efficient and cheaper countries costs export income. Greece also relies heavily on service industries including tourism, which prosper during economic good times. Not unlike many other countries, the hosting of the Olympics Games resulted financial losses in the millions. All these create huge unemployment, and no matter how big the bail out, the situations will be difficult to reversed.
Greece has to default and free itself from the Eurozone and start afresh. Change experts know that change can only be achieved effectively if one is prepared to do so without the external pressure. Greece citizens have to bite the bullet and learn to live within their means.
Germany is flexing its muscle to get this finished and done with, because it has a lot more to lose if Greece were to go bankrupt and leaves the clan - it will affect the Euro currency, and make export expensive.
The rise of unemployment is not a unique Grecian phenomenon. It is a lesson Australia must take note.
