Central banks come to Europe’s aid

[maple_leafs182]

Theoretically I'm all for that. But letting the CreditAnstalt fail (link to article about failure) during the Spring of 1931 turned a nasty recession into the Great Depression. (edited to fix spelling and year of collapse).

That is what we need, that is what the market is calling for, a deflationary depression. I know that sucks but had credit not been so readily available in the 20's there would not of been the first great depression, just like if credit wasn't so readily available prior to the recession there would not of been the recession. This is why I advocate for a gold standard, it limits the amount of debt available in the market.

If we want to get the economy growing again we need to let all the bad debt liquidate and let people acquire capital and invest that capitol back into the economy. We need savings to drive the economy, not debt.

[Wild Bill]

The real problem seems to be that Greece seems intent on just accepting bailout money without getting serious about the source of its problems.

Who would want to just keep floating them bailout money? That amounts to a tax on productive working people in countries like Germany so that workers in Greece can continue to get a free ride and a soft life!

Politicians in those productive countries no doubt are well aware that if they continue to let Greece sponge off their people future elections will see those politicians turfed out of office!

It sure looks like the people of Greece are going to have to learn the hard way! No doubt they will find it easier to just blame and get angry at the Germans and the others like them. When you have a sense of entitlement you think the universe is supposed to work in a way that gives you what you think you deserve.

[maple_leafs182]

The real problem seems to be that Greece seems intent on just accepting bailout money without getting serious about the source of its problems.

Who would want to just keep floating them bailout money? That amounts to a tax on productive working people in countries like Germany so that workers in Greece can continue to get a free ride and a soft life!

Politicians in those productive countries no doubt are well aware that if they continue to let Greece sponge off their people future elections will see those politicians turfed out of office!

It sure looks like the people of Greece are going to have to learn the hard way! No doubt they will find it easier to just blame and get angry at the Germans and the others like them. When you have a sense of entitlement you think the universe is supposed to work in a way that gives you what you think you deserve.

To be fair, America is in a similar position except it has the ability to print money to cover its debt which it is doing.

But you are right, that is why I don't like entitlement programs, they are often payed for using debt and there comes a point where the debt needed to fund them becomes unsustainable.