OK, so I kind of mashed up this title.
The first part is obvious, something about Greeks and gifts. The second part is actually a double entendre.
I cobbled together the old line of, “If you believe that, then I’ve got a bridge to sell ya!” and a reference to one of the initiatives underway to save the Greek economy, namely selling infrastructure.
Both ideas have the same outcome. Investors get hoodwinked. When it comes to the Greek bailout and exit, we should all be wary.
Despite what you hear or read otherwise, nothing has been fixed. Nothing will get done. And the euro is still very much at risk.
Invest in the region at your peril.
Eight years ago, the Greeks were hemorrhaging cash. The country ran a 15% budget deficit in 2009, but nobody knew how bad it was because they were scared to run the numbers.
Greek officials begged the European Commission (EC), European Central Bank (ECB), and IMF for a helping hand.
The troika, as it became known, threw the country a financial lifeline, but attached conditions.
The Greeks had to get a handle on their budget, reform their pensions, taxes, and work rules, and start selling assets through privatization.
The Greeks readily agreed. And then screwed it up.
They reformed pensions a bit. They even raised taxes. And they cut spending. They started the process of selling assets. But they couldn’t quite get any of it done, at least not enough to keep the country afloat.
The country fell back into crisis and needed another bailout. Then another.
The population threw out the government and elected a far left party, then matched that by giving the far-right party a few seats as well.
Pensions were cut again. And again.
Taxes were raised. A lot.
If you make more than 60,000 euros per year, you can expect to send 75% to the government. If they can catch you. Tax evasion remains a national past time.
They haven’t sold many assets. After identifying more than $60 billion that could be privatized, they’ve managed to sell $6 billion.
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