Thursday, October 16, 2014

Economy

Greece's economic problems have never been fixed.
"A fresh crisis in Greece is coming at a bad time for the eurozone, already worried about deflation and a slowing economy.
The Greek stock index has lost 12 per cent over the past two days and was down another 2.5 per cent today.
Investors been spooked by the prospect of new elections that could result in more power for the left-wing Syriza party, which wants to renege on Greece’s massive debt.
After five years of austerity, Greece has a jobless rate of 27 per cent and a moribund economy beset by inflation.
Just as the government was making plans to exit its bailout program, underwritten by the rest of Europe, its bond market has taken a hit.
The rate on the benchmark 10-years bonds jumped to 8.71 per cent from just 5.6 per cent just last month -- a sign investors are more worried the country might default.
Bond yields on the eurozone’s other troubled members  -- Spain, Portugal and Italy – also rose."
Uh-oh.
"Loans from the EU to Greece will stop at the end of this year and it must renegotiate. Greece needed 240 billion euros ($307 billion) in bailout loans in 2010 and 2012 from other countries that use the euro and from the International Monetary Fund.
In Athens, Finance Minister Gikas Hardouvelis insisted Greece was not sliding back into financial turmoil and remained committed to meeting bailout targets.
"The market atmosphere seen in the last couple of days does not reflect the state of the Greek economy ... Our path to growth is now a reality," he told parliament."
He sounds like an accomplished liar.

48 million Americans live in poverty.

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