Greece has stolen the show again last week. After a merger, Alpha Bank and EFG, that is still not understood by markets and regulators more bad news for the troubled economy.
The recent data it shows that the Greek economy is contracting faster than expected. What a surprise. The austerity measures have pushed the economy further in recession. Was anyone out there in their right mind thinking that during a global crisis higher taxes, lower government spending and lower wages would lead to growth? Besides the aliens from IMF and EU.
I do not know how many times I can say this but Greece will not ever pay back the money it owes. What is happening right now is not helping the Greek economy or the EU. The end result will just be a general unhappiness with the EU and EURO. Yes Greeks have lived beyond their means, but they did borrow the money on the free and smart financial markets. They did not steal them. Maybe some banks where traders were not sufficiently supervised should have paid better attention. Maybe the rating agencies should have done a better job in signalling the risks of investing in Greece. Maybe the EU should have done a better job in assessing the Greek economy. Maybe. But it is too late now. Now the solution can only involve a fresh start for Greece and EU. Either together or separate. But the current situation is not helping anyone in fact is just bringing to the surface other problems, i.e. Italy.