Eurozone leaders defy logic over Greece bailout
It never fails to amaze me how people always fail to see the big picture, ignore reality and pretend things are not as they really are. We are, however, talking about politicians, so normal rules don't apply.
Such a situation is illustrated by the details of the latest Greek bailout. Before this latest bailout, Greece owed €323bn. It is now getting, under strict conditions, around €80bn in a bailout.
Experts say Greece will need approximately €30bn to keep its banks solvent in addition to the aforementioned €80bn.
When these amounts are added to the €323bn, the Greeks will owe €433bn approximately. It was generally agreed that the €323bn was too much for them and never likely to be repaid. So how will the €433bn be repaid?
The logic of this situation belies belief. The eurozone, while vehemently decrying Greek behaviour, is actually digging a bigger financial hole for itself by loaning more money to a country that has passed the point of no financial return.
The eurozone leaders, while saying they are safeguarding their countries' financial resources, are throwing good money after bad. Protection of political reputations is more important than protection of national financial resources, it seems.