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Bailing out Greece

September 15, 2011

I was listening to the news today – about how much money foreign banks and countries have ‘given’ Greece in the form of loans. And about just how huge its debts are, and about how little constructive change has been made to improve that Country’s situation. Commentators seemed unanimous that there was no certainty that Greece would be able to repay these loans and that increasing its debt burden wasn’t actually going to help the country to recover.

And then I thought back to the banking crisis which turned out to be largely due to  Banks lending money to people who couldn’t afford to repay it – those ‘sub-prime’ mortgages.  Simply shocking, crass incompetence. How on earth could educated and experienced bankers think it was the right thing to do; lending all that money to people who clearly couldn’t afford the repayments and were almost certainly going to default?

Are you thinking what I’m thinking?

Here we go again, and this time to the tune of about $100 billion if I remember correctly.

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