The Problems in Greece

Thanks to reader TA for sending these two links to NY Times articles regarding Greece. They provide a preview of what may be coming here:

Greece Riots

Mish provides a summary of reporting on disintegration of Greece: Total Chaos; Riots Rage; Athens Resembles War Zone Coverage of the chaos in Greece is now everywhere I look. Here is a sampling of stories: The Guardian Greek protesters fight with police as parliament agrees cuts deal As more than 40 buildings went up in flames, including two historic cinemas [...]

Twenty Reasons Why Europe is in Deep Doo-doo

From the American Dream website: #1 The unemployment rate for those between the ages of 16 and 24 is 28 percent in Italy, 43 percent in Greece and 51 percent in Spain. #2 Overall, the unemployment rate for those under the age of 25 in the EU is 22.7 percent. #3 Citigroup is projecting that the economy of Portugal will shrink by 5.7 percent this year. #4 The total of all forms of [...]

Time Can and Is “Running Back”

To think that civilizations always progress is a sign of ignorance, if not stupidity. Ludwig von Mises emphasized how proper institutions and incentives were necessary for progress. He knew that progress neither constant nor guaranteed. If institutions and incentives are damaged or destroyed, progress will cease and retrogression will set in. History is replete with examples of how societies and [...]

Greecian Formula for US Failure

There are any number of areas that could be listed reasons for the collapse of Greece. This graph, from Dan Mitchell, is telling enough that it is probably not necessary to go any further in the autopsy of this country. From the graph, government employees increased by substantially over 100% during a period when the population of Greece grew about 16%. [...]

European Scam in One Paragraph

Michael Snyder has captured in one paragraph the scam that is being marketed as the “solution” to the Greek and European problem (my emphasis): Once the euphoria of the initial announcement faded and as people have begun to closely examine the details of the European debt deal, they have started to realize that this “debt deal” is really just a [...]

“Caring” Politicians versus Impersonal Markets

Europe The absurdity and desperation of Europe with regard to the Greece problem should be readily apparent to all save those mathematically or economically blind. Tyler Durden’s describes it simply: The math of the European bailout (using the EFSF or otherwise) is so easy even a cave-EUReaucrat can do it: It doesn’t work.  There is no workout to the situation, at least [...]

Greece is a Precursor to The Others

Reader JJC provides some insight on Greece. The same pretensions are going on in other European countries and in the US. Greece is merely further along than others, although all are headed for the same fate. The days of “extend and pretend’ are nearing an end in Europe and in the US. The Greeks have shown an unflagging ability to [...]

El-Erian Comments on Greece Performance

Yahoo News reports on comments by Mohammed El-Erian, head of Pimco, on the Greece situation: “After a year, every indicator has unfortunately worsened, despite the incredible quantity of financial assistance,” Mohammed El-Erian told Italy’s Corriere della Sera daily, “All of this has terrible human consequences and it’s associated with a transfer of liabilities from private creditors to European taxpayers. Why? [...]

Greece-ian Formula For US

Most people are unable or unwilling to imagine what is coming in Euro land. Despite all efforts, a scenario similar to the following will unfold. It will trigger a domino effect which will eventually destroy the Euro. We are headed for a similar fate as a result of our profligacy. Our debt cannot be paid off. It is too large. [...]

Italy is Coming

Why are the Euro banks so scared of Greece? Looks like Italy dwarfs that problem. Why An Italian Debt Crisis Should Scare The Crap Out Of Everyone If the Greek debt crisis is a tough pickle to solve, it would be nothing compared to a crisis in Italy, which is falling hard after a warning on its debt from S&P. [...]

Grecian Formula Changes More Than Hair Color

Quote of the day from As Greece Suffers More Strikes Liberals Should Watch Closely: As we watch the inevitable fissures in European style socialism breaking wide open for all to see, this is a most propitious time to turn inward and ask ourselves if the model that American left seems so stubbornly intent on replicating here even works, let alone [...]