7 ms·

In particular, the money was used to bail out a bunch of German banks, who as far as I can understand it ended up with all that debt because Germany was running

by makomk 4y ago

In particular, the money was used to bail out a bunch of German banks, who as far as I can understand it ended up with all that debt because Germany was running a trade surplus with Greece directly enabled by the structure of the Eurozone without any corresponding fiscal transfers that would balance it out, and that in turm directly benefitted Germany as well.

looping__lui 4y ago
Maybe Greek should have paid taxes after all: https://www.businessinsider.com/corruption-in-greese-hampering-economic-recovery-2010-1?amp https://www.businessinsider.com/corruption-in-greese-hamperi... But the funny thing is: Greek themselves find their country too corrupt and bloated that they aren’t willing to pay for it with THEIR OWN money… Much of Greeks debt problem would not have existed had the Greek citizens paid taxes like the rest of Europe.
Gibbon1 4y ago
That whole bit caused me to rethink the fiscal transfers between regions in the US. So California sends a bunch of money to the feds who turn around an give some to Mississippi? Okay fine because that's way better than what the EU did to the schmucks living in Greece. Or if the banks fail in Texas it's the FED that's not on the hook not random Texans. The underlying thing is in the US states give up being able to use monetary policy to balance trade. In return the Fed's backstop a lot of stuff and transfer money around. Overall that's fair. In the EU states give up being able to use monetary policy to balance trade. In return no fiscal transfers. And the EU backstop's French and German banks by squeezing poorer states. That's not fair at all.
- looping__lui 4y ago
  Germany is the biggest contributor to the EU: https://www.statista.com/statistics/316691/eu-budget-contributions-by-country/ https://www.statista.com/statistics/316691/eu-budget-contrib... Contributing 18x as much as Greece. As I said before: Greece should be able to balance their trade deficit with their own funny money currency. THEM LYING in the process of joining the Euro sealed their economic doom in a sense.
  - 4gotunameagain 4y ago
    > Contributing 18x as much as Greece. 2.2x, when adjusted for population. 0.92x when adjusted for GPD. So Greece actually pays more ;) I suggest you start having alternative sources for news and geopolitical issues my fellow angry German.
    - looping__lui 4y ago
      Yes, and Greek are also the hardest working… We all know that. https://www.economist.com/graphic-detail/2012/05/30/stereotypes-of-europe https://www.economist.com/graphic-detail/2012/05/30/stereoty...
      - planetis 4y ago
        You couldn't have found a worst article than that. You've actually disproved your own point. > Greece does actually work the longest hours in Europe, as this graphic of OECD data shows.

by makomk 4y ago

looping__lui 4y ago

Maybe Greek should have paid taxes after all: https://www.businessinsider.com/corruption-in-greese-hampering-economic-recovery-2010-1?amp https://www.businessinsider.com/corruption-in-greese-hamperi... But the funny thing is: Greek themselves find their country too corrupt and bloated that they aren’t willing to pay for it with THEIR OWN money… Much of Greeks debt problem would not have existed had the Greek citizens paid taxes like the rest of Europe.

Gibbon1 4y ago

That whole bit caused me to rethink the fiscal transfers between regions in the US. So California sends a bunch of money to the feds who turn around an give some to Mississippi? Okay fine because that's way better than what the EU did to the schmucks living in Greece. Or if the banks fail in Texas it's the FED that's not on the hook not random Texans. The underlying thing is in the US states give up being able to use monetary policy to balance trade. In return the Fed's backstop a lot of stuff and transfer money around. Overall that's fair. In the EU states give up being able to use monetary policy to balance trade. In return no fiscal transfers. And the EU backstop's French and German banks by squeezing poorer states. That's not fair at all.

looping__lui 4y ago
Germany is the biggest contributor to the EU: https://www.statista.com/statistics/316691/eu-budget-contributions-by-country/ https://www.statista.com/statistics/316691/eu-budget-contrib... Contributing 18x as much as Greece. As I said before: Greece should be able to balance their trade deficit with their own funny money currency. THEM LYING in the process of joining the Euro sealed their economic doom in a sense.
- 4gotunameagain 4y ago
  > Contributing 18x as much as Greece. 2.2x, when adjusted for population. 0.92x when adjusted for GPD. So Greece actually pays more ;) I suggest you start having alternative sources for news and geopolitical issues my fellow angry German.
  - looping__lui 4y ago
    Yes, and Greek are also the hardest working… We all know that. https://www.economist.com/graphic-detail/2012/05/30/stereotypes-of-europe https://www.economist.com/graphic-detail/2012/05/30/stereoty...
    - planetis 4y ago
      You couldn't have found a worst article than that. You've actually disproved your own point. > Greece does actually work the longest hours in Europe, as this graphic of OECD data shows.