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And what did Greece do with money it borrowed from German and French banks?
by nazgob 11y ago
And what did Greece do with money it borrowed from German and French banks?
- nisa 11y agoThey bought german weapons and gave money to german firms.. e.g. https://en.wikipedia.org/wiki/Siemens_Greek_bribery_scandal https://en.wikipedia.org/wiki/Siemens_Greek_bribery_scandal
- nazgob 11y agoWhy they did that? Poor countries should not buy brand new German subs. Where are the subs now? As far as I now they are deployed in Greek Navy and like any sub are quite expensive to operate. Did Greece spend all borrowed money on German weapons?
- youngtaff 11y agoDoes it matter? When a bank makes a loan there's always a risk of losing money and that's priced into the load (or should be). 'moral hazard' should limit the amount of money banks are willing to lose and so willing to lend to people / companies / countries etc. The banks and european politicians seem to have forgotten about the hazard and instead bailed out those who lent money to Greece and left the public to pick up the cost.