Greece as a Ponzi
Why do the Greeks want to stay in the Euro? It doesn’t make sense, but on the other hand, by staying in the Euro, they will receive money, they won’t be able to pay back. By Biderman.
I remain long term bearish on European stocks and as well as the big US banks. Why?
Greek public opinion is that they want to stay in the Euro but they want easier terms. At first blush it does not make sense to me why they would want to stay in the Euro? The Greek economy is a disaster and getting worse, so why would they not want to go in another direction? The only answer I can come up with is they like being able to borrow money to pay their bills and, even better, never having to pay the loans back. That makes sense.
If Germany is willing to keep lending to Greece even if most goes to repay older loans, Greece keeps getting some new cash. If Greece left the Euro, even that modest amount of fresh cash would disappear. How horrible! Greeks would actually have to go out and do stuff. They might have to work for a living and pay some taxes for government services. Video below.