You Know, Greece Has Been in Default for a Couple of Years

Everyone keeps going on about how Greece is about to default. They defaulted when they asked for the 1st bailout. Greece teeters toward debt default as E.U. spurns new bailout bid – The Washington Post.

And in order to get that bailout, they promised to do things. Straighten out the tax situation, cut costs, and privatize industries. They haven’t done all of that. Then they asked for a 2nd bailout, because the 1st wasn’t good enough. And they got it, even though they hadn’t done all of that stuff. At the time of the 2nd bailout, they said, “cross my heart” we promise to do all that stuff. Except of course they haven’t done all that stuff. Now they want yet a 3rd bailout, but this time they are saying “we won’t do all that stuff we promised for the 1st and 2nd bailouts, but give us money anyway.”

Do you wonder why the Germans aren’t leaping to their rescue? (They are the ones footing most of the bill.)

The EU, the IMF and pretty much everyone in the world who had money to loan the Geeks were clear on the “meet these objectives, or no more money.” You could say “Or else.”) But in December the Greeks elected themselves a government dedicated to NOT meeting those agreements. Sorry but you can’t have your cake and eat it too. Especially not when someone else is paying for the bakery.

Any money that anyone gives the Greeks at this point should be considered a gift and not a loan. Because if you loan it to them, their government has proven (3 times in the past 5 years) that they won’t pay it back.

Would anyone loan you money if you had 2 foreclosures in 5 years? Of course not. You wouldn’t have even been given the 2nd loan.