Athens News (February 11, 2012)
“Sacrificed at the altar of continued eurozone membership, Greece’s youth are paying the highest price for the politicians’ inability to implement virtually any of the reforms stipulated in the first bailout memorandum….Greece is better off in the euro than with the drachma, whatever the arguments to the contrary. But it will not be long before people in their twenties and early thirties say that enough is enough.”
Tags: Drachma, eurozone, Greece, Politicians, Youth
New York Times (February 9, 2012)
The “Greek Tragedy” continues to unfold. “By forcing all Greeks to suffer with no real prospects of relief, Europe is uniting the country, now beset by strikes, against further reforms.” Unfortunately, Greece has little choice. “It cannot survive without Europe’s money, even if it chokes on Europe’s conditions.”
Guardian (January 25, 2012)
“The euro fell sharply on the foreign exchanges today after the legendary speculator George Soros said that growing economic and political tensions could destroy the European Union.” At the World Economic Forum in Davos, other economists have added their voices to his warnings. Soro’s said, “Unfortunately, the European authorities had little understanding of how financial markets really work, and did everything wrong.” He pointed out that Greece is now on the verge of default.
The Telegraph (October 31)
“Veteran investor George Soros has attacked the lack of leadership at the top of the eurozone and said that the new Brussels ‘deal’ to solve the debt crisis will only last between ‘one day and three months.’” Soros points out faults. The 50% Greek debt cut will actually only amount to 20%. Banks may not agree to the terms, hoping to collect on their credit default swaps. And clueless European leaders have again responded with “too little too late.”
The Independent (July 22)
In assembling the latest bailout plan for Greece, European leaders have again “done the bare minimum required of them.” They have successfully “bought some time, but not much. Their failure to agree on a radical plan of action to restore confidence and address the root drivers of bond market panic means that this crisis is not over.”
Bloomberg (July 12)
In Europe, contagion is spreading from Greece. “Exploding bond yields in Italy and Spain brought the crisis closer to the heart of the euro area.” Europe’s leaders now look prepared to reconsider measures they had previously ruled out, such as buying back Greek debt at a discount. Whether they can avert disaster remains to be seen. Italy felt the brunt of the expanding crisis as 10-year bonds rose 326 basis points over Germany’s, “a euro-era high.”
Financial Times (July 10)
Ratings agencies have come under considerable criticism since the Lehman crisis. Most recently, European leaders have heaped scorn on them after Moody’s downgraded Portugal to junk and S&P evaluated a proposal for a Greek debt rollover as a selective default. This time, the ratings agencies are addressing truths that are difficult to stomach. “We have to thank the rating agencies for giving the eurozone’s policymakers a clearer vision of which strategies are feasible, and which are not. It is now time to get serious.”
The Economist (June 30)
Markets breathed a sigh of relief when Greece passed recent austerity measures, but the “new plan to cut Greece’s debt looks doomed to fail.” The plan is both too draconian and too light on real reform. “It does too little to prevent the epic folly of Greece’s railways and other ruinous schemes. It will screw down too hard on ordinary Greeks, with new taxes, spending cuts and a rushed privatisation scheme. And it will almost certainly condemn Greece to recession, strife and an eventual debt default.”
New York Times (June 29)
The ongoing crisis in Greece has exposed a deeper problem in Europe. “There are no European leaders, just a German chancellor, a French president, an Italian prime minister and others who … never look much beyond their local political interests.”
Tags: Crisis, Europe, Greece, Leadership
Time (June 28)
The deadline is nearing for the Greek parliament to decide whether to accept mandatory austerity measures and receive an EU bailout…or risk defaulting on sovereign debt. The unions are voicing their opinion with a strike. “Workers across Greece walked off the job Tuesday at the start of a 48-hour general strike as lawmakers debate a new round of austerity reforms designed to win the country additional rescue loans needed to avoid bankruptcy.” There won’t be long to wait. The vote is due on Thursday at the latest.
