Tuesday, June 7, 2011

Obama on Greece

"...other countries are going to have to provide them a backstop and support....it would be disastrous for us to see an uncontrolled spiral and default in Europe, because that could trigger a whole range of other events..." so said President Obama today while visiting with German Chancellor Angela Merkel.

Maybe Obama should take some notes here. The Greeks are interested in two things: 1) more bond sales backed by the Eurozone; 2) no austerity. Unfortunately, these two are incompatible and will not happen. German and French citizens are fed up with bankrolling the sick Greek economy and the absurd work ethic of most of the Greek citizenry. If "disastrous" is the right name, then it is on its way. Ultimately, no one has the resources to bail out Greece indefinitely.

Obama should look at the situation in his own country, which is on a path to the same outcome that lies ahead for Greece....bankruptcy.

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