Friday, February 10, 2012

No strings attached

This latest announcement by the Greeks reeks of desperation, their police union threatened to arrest any EU or IMF officials. All because the EU wants austerity in exchange for more loans.

At this point it feels like a big game of chicken. Everyone knows Greece can't possibly pay back all of its debt, so the question is - how much are the Germans willing to pay to keep the EU intact? $100 billion? $500 billion? At what point do they say nein? The Greeks don't want austerity because they know there's a good chance they can get the money with no strings attached. But at what cost? Didn't we learn our lesson about angry Germans last century? Twice?

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