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Obama Administration proposes corporate tax overhaulFollow

#52 Feb 28 2012 at 9:17 AM Rating: Good
Supreme Lionator
14,174 posts
Then the GFC happened, and so many European nations became insolvent. Germany HAS the funds to bail them all out, (and indeed the GFC has not much affected German business profitability) but individual Germans are bitterly resentful that their careful and clever money making practices are being asked to fund several nations that have collapsed under the burden of collective debt. They want iron-clad guarantees that if they bail-out places like Greece, that their money WILL be repaid back to them. For Greece and other insolvent European nations to engineer successful repayments, even long term, from the starting point of where they are, public spending has to halve, throwing millions out of work, halving the pay-checks of the rest, and reducing pensioners, students and the unemployed to such depths of poverty they will all have to move if paying rent, and stop buying anything but food. Hence rioting in Greece, and continual government turn-over and bail-out delay, as the Greek citizenry refuse the needed austerity measures to get them solvent.

The simple truth is that Greece can't become solvent in the short or medium term. Steep asuterity will send, and has been sending, them into a downward spiral so that they need even greater austerity to pay back their debt, and so on. I doubt it'll take long before most of the professional classes take advantage of the free movement of persons to get the **** out.

Insisting on crippling austerity is a terrible way to get your money back, but a great way to destroy a nation.
“Socialism never took root in America because the poor see themselves not as an exploited proletariat but as temporarily embarrassed millionaires.”
#53 Feb 28 2012 at 9:51 AM Rating: Excellent
16,299 posts
Jophiel wrote:

Oh my! It's starting to sound harder than just waving your arms around and hooting "Government!!"

Edited, Feb 28th 2012 8:21am by Jophiel

I read that in George Takei's voice.
#54 Feb 28 2012 at 9:56 AM Rating: Good
Everyone's Oiran
15,952 posts
Oh, I'm not saying the bail-out should happen, or should happen how the German's want it to. A lot of sensible people are saying that in the long term Greece, and possibly others, would be better off eating their medicine by defaulting.

My major point was that it is German habit for individuals and businesses to save and buy, and save and invest, instead of borrowing and buying, and borrowing and investing. Including and especially when it comes to expanding a business. That's why they aren't in trouble now, and it's why they are very dubious about lending money to people who habitually borrow.
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