Eurozone geezers approved the 2nd bailout for Greece to try an stop da bleed.
Check it. Europe Reaches a Greek Deal.
“Euro-zone finance ministers early Tuesday agreed to an ambitious €130 billion ($172.1 billion) rescue deal that will see Greece’s private creditors take an even larger loss in order to put the debt-laden country on a sustainable footing and avert a catastrophic default.”
Check it. Europe Picks Greek Aid Over Default.
“Debt-stricken Greece won a second bailout after European governments wrung concessions from private investors and tapped into European Central Bank profits to shield the euro area from a precedent-setting default.”
Check it. Eurozone bailout will not end Greece’s pain.
“According to analysts, Greece will continue to struggle with its economic woes even with the new 130-billion-euro (170 billion dollar) bailout. They say the funds may still not be enough to bring the country’s debt down to a manageable level in the long term.”
Check it. Pain Without Gain.
Paul Krugman in the New York Times says, “The results are in: austerity policies have been an utter failure.
Specifically, in early 2010 austerity economics — the insistence that governments should slash spending even in the face of high unemployment — became all the rage in European capitals. The doctrine asserted that the direct negative effects of spending cuts on employment would be offset by changes in “confidence,” that savage spending cuts would lead to a surge in consumer and business spending, while nations failing to make such cuts would see capital flight and soaring interest rates. If this sounds to you like something Herbert Hoover might have said, you’re right: It does and he did.
Now the results are in — and they’re exactly what three generations’ worth of economic analysis and all the lessons of history should have told you would happen. The confidence fairy has failed to show up: none of the countries slashing spending have seen the predicted private-sector surge. Instead, the depressing effects of fiscal austerity have been reinforced by falling private spending.”
Bet on Krugman.
Money here is Krugman is right (again). In retrospect, even Conservatives, including former Bush Speechwriter agree with the Nobel Prize winning economist, who time and again has been dead on.
Check it. Bush speechwriter: Krugman was right.
“Imagine, if you will, someone who read only the Wall Street Journal editorial page between 2000 and 2011, and someone in the same period who read only the collected columns of Paul Krugman. Which reader would have been better informed about the realities of the current economic crisis? The answer, I think, should give us pause. Can it be that our enemies were right? ”