http://www.cnn.com/2012/02/20/business/greece-bailout/index.html?hpt=hp_t3
I noticed this article today and thought it was pretty significant. It basically describes the Eurogroup's decision to spend $173 billion in order to help Greece. Without the help, Greece would default and be in a lot of trouble. The article also explained that Greece is currently in a pile of debt that equates to 160% of its GDP. Greece is in its 5th year of recession and saw its GDP fall by 6.8% last year. Do you think that this bailout will help turn Greece around? Or is it just a short term fix to a giant problem?
I agree that this might just amount to a short term fix. While I think that the stimulus is necessary to keep Greece away from default, I think it will only be a short time before Greece is again in need of a bailout. Greece is going to be on the line for interest on the bailout for quite a while and it may very well take precedent over restabilizing the economy and putting money in the hands of the people.
ReplyDeleteI agree, Ryan. I think it was certainly necessary to prevent the default, but I don't think being handed $170 billion is going to automatically fix the countries financial problems in the future
ReplyDeleteCutting down Greece's debt is not a solution, but a step to solving the current economic situation. Since the money from the Eurogroup simply repaid the lenders, Greece's economy hasn't changed in term of their cash flow and the power to generate euros. In order to solve the crisis, there should be money to promote education, businesses, innavations, etc. Repaying does not equate to complete recovery of the economy.
ReplyDeleteI think that it is necessary to bailout Greece, but I think this might just be a short term fix. I agree with what Ryan said, this may help now but they will most likely need another bailout later on.
ReplyDeleteSo would you elect not to do it then in fear of Greece abusing a system, expecting be bailed out once again?
ReplyDeleteI dont know what to think about this really. It seems like they are way to far gone to help, but at the same time you dont want to just turn your back on them. I hope that this will help, but I just dont think it will.
ReplyDeleteAlthough on a smaller scale, we can use the auto industries as an example, McCann. Many American citizens asked if a bail out for the big three would just leave CEOs dependent on government support; just as you purpose might happen with Greece.
ReplyDeleteIn reality, all bail out money and interest has been repaid to the Government and the auto industry has shown great improvements; especially in R&D and innovative designs that will help for future growth.
A bail out for Greece will not guarantee their future financial security, but it will allow them to begin preparing. I am in full support.
This was a necessary action. Although I believe that Greece should be watched more closely by the European Union.
ReplyDeleteI definitely think that Greece needed the bailout, the big countries in Europe, especially Germany are not going to let Greece default, but this is a short term fix. As a society Greece needs to have some huge reforms that can stabilize their country in the future and for the long run. This will also benefit the entire Eurozone.
ReplyDeleteDefinitely not a long-term fix, but the increased market competitiveness and stability helps, for now.
ReplyDeleteNot a long-term fix but hopefully will get them going in the right direction towards full recovery.
ReplyDeleteThis will help with the short-term and it might help a little for long term but it will not be enough to fix it long term
ReplyDeleteI agree with what has been said above, however I think that if the government was to utilize this bailout and build up the necessary actions that needed to be taken, this bailout could turn out to be just enough to turn their economy around in the long run. That being said, I think its unlikely that it will prove to be more than a band-aid for Greece.
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