Greek Prime Minister Calls for Referendum on Bailout Terms
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Re: Greek Prime Minister Calls for Referendum on Bailout Terms
#2When you say “No one country in a currency union can endlessly spend money at the cost of the others” then you have to do exactly what you imply, otherwise yes they will keep on spending money. So now it's too late for referendum or whatever.
As a side note, I have friends with the finger on the trigger to sell "everything" hellas and euro related. Enjoy EUR/USD
Re: Greek Prime Minister Calls for Referendum on Bailout Terms
#3Here's where I think we are: Anything Greece would consider fair, Germany would consider unacceptable, and anything Germany would consider fair, Greece would consider unacceptable. There is no place where their positions can meet.
Asking for a referendum is clever. He's going to get the Greek public to share the blame for the consequences of what comes. But notice the words he uses when he places it before the voters. He's asking them to reject the bailout terms.
Re: Greek Prime Minister Calls for Referendum on Bailout Terms
#4When you say “No one country in a currency union can endlessly spend money at the cost of the others” then you have to do exactly what you imply, otherwise yes they will keep on spending money. So now it's too late for referendum or whatever. As a side note, I have friends with the finger on the trigger to sell "everything" hellas and euro related. Enjoy EUR/USD
For when Greece goes back to the Drachma? Greece is about to become a good investment. After the severe post euro-exit correction, of course...
Re: Greek Prime Minister Calls for Referendum on Bailout Terms
#5Here's where I think we are: Anything Greece would consider fair, Germany would consider unacceptable, and anything Germany would consider fair, Greece would consider unacceptable. There is no place where their positions can meet. Asking for a referendum is clever. He's going to get the Greek public to share the blame for the consequences of what comes. But notice the words he uses when he places it before the voters…
That struck me as well, but I wonder if perhaps he's not really allowed to reject the terms himself?
Critically, by having the people reject the terms he is not going to be labelled a sellout in domestic voters' eyes and thus will retain a chance at an additional political term.
He doesn't really have another option.
Re: Greek Prime Minister Calls for Referendum on Bailout Terms
#6Fascinating that one of the problems is that the Greeks want to increase taxes too much. And the creditors who have imposed austerity are worried it might affect growth!