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[..] the matter of how Greece was permitted to join the Eurozone with, shall we say, overly optimistic economic reports that were blindly accepted [..] I t
by sasvari 15y ago
[..] the matter of how Greece was permitted to join the
Eurozone with, shall we say, overly optimistic economic
reports that were blindly accepted [..]
I think this is one of the fundamental things about this whole crisis (concerning Greece). everybody knew that the Greece governments were very creative with their way of presenting their financial situations back to the seventies (or even longer), and everybody knew it when the decision was made to let them join the euro.
but nobody checked their balances, but only trusted the numbers the Greeks were serving and which everybody knew were kind of faked.
so in the end, the most ridiculous thing is that there never was a Plan B, or some kind of secret exit strategy. all the ones in charge of in the EU and its member states for more than a decade exactly knew that you can't trust the official numbers coming from the Greek peninsula, and nobody did a thing or thought of a plan to follow in the worst case scenario (which had to come one day)?
Edit: typo
- johnyzee 15y agoSince this is so obvious to everyone, the logical conclusion seems to be that things worked out exactly as planned for somebody. I know, "never attribute to malice" etc., but the pattern of banks encouraging non-creditworthy entities to pig out on debt, leading to their devastating and unceremonious bankruptcy a few miles down the road seems very common by now. I am not well versed enough in finance to speculate on who gains and how in these scenarios, but it seems like too much of a lock-in to be 'accident'. I know that in the past, nations and the IMF used loans and defaults to influence policies of other countries, could it be something like that going on here? Default as a way to force spending cuts and other political changes?
- cheez 15y agoIf there are 147 entities controlling 40% of the global financial market, this is not that far-fetched.
- arethuza 15y agoIsn't that rather similar to the subprime mortgage fiasco - everyone "knew" that there were stacks of mortgages that were worthless, but everyone continued regardless.
- deleted 15y ago[deleted]