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Further bailout will be of no help to the Greeks

A further Greek bailout could do more harm than good. The country is already up to its neck in debt and yet the EU is planning to put another albatross over its head.

The only solution for Greece is to write down its debt significantly, reschedule its payments or cancel its debt. Clearly, it is costing a fortune to run the country and one has to seriously question its ability to pay back any debt, never mind another bailout.

Greece's economic viability is also in doubt, in addition to its political instability. The Greek economy is chronically dependent on tourism, which is seasonal and will not pull Greece out of its economic difficulties alone.

The bottom line is that Greece has no money and is essentially a bankrupt country. What in the name of God is a further bailout going to do for Greece other than get Greeks into more difficulty?

Greece has had two bailouts since 1998 and they have not worked - they are just a stay of execution. The only way out is to restructure the country's debt, or cancel it altogether and start with fresh capital and wide-sweeping reforms.

The old adage of throwing good money after bad is all-too-evident in the Greek predicament.

Reforms will have to be meticulous and excruciating for Greece to stand any chance, but it is by no means certain that even if severe austerity comes in it will solve Greece's long-term problem of capital adequacy.


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