Greek Debt Crisis - Global Finanical Mess

Off Topic Politics & World Issues
1

Just saw where the EU had gotten together a loan package of $970 billion - I need some help understanding how this actually solves any of the underlying problems.

Isn;t the entire financial crisis predicated upon countries having too much debt that they cannot possibly pay back? Greece, for example, had 100% of the GDP locke dup in debt servicing - so how is making more debt available a solution to the real problem?

is this not just postponing the inevitable - just as we in the US did with the home mortgage business (and are still doing)?

Can someone with mor efinanical savvy explain this?

thanks!

2

Yeah, all the debt needs to be absolved so that assets can be liquidated and returned to productive enterprises.

The real problem is that the losers would be all the politically connected people who have the means to make the non-politically connected pay for it; hence, they can keep getting bailed out – ah, thank you central banking puppet masters!!

:confused: