Comments:Eurozone offers Greece 30 billion euro in loans
I personally think that Greece should not take the loans. In order to get out of debt, one has to stop taking loans that have to be paid back in most cases. And 30 billion really isn't a lot if you think about it. Sure, it can buy a lot for the average person, but for governments it is a puny amount. In other words, there is no reason to accept the loan.
- Yeah, this is funnier than fiction. The cure for a debt-stricken country? Why, more loans, of course! Melikamp (talk) 13:42, 12 April 2010 (UTC)
It depends on how you use the loan.
1. 'cashflow' problem - ie. car been written off, and you need a new one to get to work but insurers are dragging their heels. you take out a loan thats enough to hire a car for 1-2months. for employers its often to pay wages before customer pays large invoice.
2. 'investment' - you believe you can make $£€ from starting a sandwich shop on high street, but need a loan to buy/refurbish premises. over time you pay off loan and are still making money.
3. 'bailout' - actually a combination of both of the above, a company/country (bank/greece) has grossly overspent but would be profitable/stable if run differently. because they have overspent they have a cashflow problem, so another person with money (taxpayers!) invest in company/country as long as it changes its ways. over time loan is paid back and company/country is covering its costs. this practically never applies to an individual, they just get declared bankrupt/gets sequestrated.
The above are necessary evils. Ideally you sort things out before they become a problem. I personally keep 1-3 months wages in savings account to cover hard times.
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|Greece won't pay back||0||01:17, 17 May 2010|
|Comments from feedback form||0||06:00, 12 April 2010|
Greece and Spain won't pay back. This was a calculated Risk, and a Lesson for the Banking System. What is happening in Greece, is a very well orchestrated show, to get granted €110bn aid, to avert meltdown. A new deception compared with the old Trojan Horse. The only thing Germans can do is: REPOSSESS 170 Leopard 2AEX Battle Tanks from Greece, and 190 Leopard 2A6E Battle Tanks from Spain. U.S.A must REPOSSESS 170 F-16 Jet Fighters from Greece, … the rest is gone with the wind …forever … Greece must stop paying lucrative pensions with borrowed money, reform the free health care system, and cut down, 4 times the military budged. Greece’s problem is too much debt. Greece has a budget deficit of 12.7% of GDP – meaning that the country is spending 12.7% more than the value of one year’s economic output. Greece is no different to a serial credit card borrower who can’t pay back his loans. But just like a serial credit card borrower, as long as Greece keeps relying on borrowed money to fund itself, the problem won’t go away. It will just get worse. http://www.defenseindustrydaily.com/Greece-in-Default-on-U-214-Submarine-Order-05801/ But don't worry; the ECB, the Feds or both will print the money. And all of us will share the pain, with our hard-earned money. Bad is never good until worse happens.