ATHENS (Reuters) - Europe moved to re-open funding to Greece's stricken economy on Thursday after the parliament in Athens approved a new bailout program in a fractious vote that left the government without a majority.
(Reuters) - Goldman Sachs Group Inc reported its smallest quarterly profit in nearly four years on Thursday as it set aside more than $1 billion to cover potential mortgage settlements, and nervous investors pulled back from bond trading.
Submitted by Pieter Cleppe via VocalInternational.com,
Last Sunday, Eurozone countries submitted yet another ultimatum to Greece: implement a whole round of reforms, from eliminating early retirement over scrapping exemptions from sales tax to opening shops on Sunday, and we'll start negotiations on providing a new bailout of possibly €86bn from the European Stability Mechanism (ESM), the Eurozone's bailout scheme, which will carry yet another series of strings attached. Here are four reasons why this whole thing is just a bad idea.
The previous two bailouts have failed. Why try more of the same?
Today, Greek debt to GDP has reached 180%, an all time high. It should come as no surprised that an overindebted country's economy will shrink when it is being burdened with even more debt. This happened from 2010 on, when the country received "emergency loans" amounting to an estimated 240 billion euro, both from Eurozone countries and the IMF. At the instigation of former French IMF chief Dominique Strauss-Kahn, the IMF violated its own principles by not allowing Greece to default on major international banks before granting it a loan. It now is facing heavy losses, after Greece has already defaulted twice on an IMF payment now or is "in arrears", in IMF-lingo. Also the "no-bailout rule" in the EU Treaty was violated.
It's true that this therefore was a bailout of major international banks who had been lending to Greece, as we have
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