Debt crisis in Greece-part 2

So,where is Greece heading? The recent 1000 point crash in Dow was a clear message that how globalization has made the world so interconnected.European leaders are not willing to acknowledge that Greece’s debt crisis will extent to Spain,Portugal and other Southern European countries.They are still optimistic that Greece’s association with the common currency will be a good for Europe.

Is it possible for Greece to stay with Euro? No,not at all.Greece should leave the euro
zone as soon as possible.If George Papandreou don’t want to leave the Euro,he will have to convince his country to accept the wage cuts/other fiscal measure.Secondly,he should request the ECB to buy Greece’s government debt.Finally,he should ask Germany and other rich nation who can flaunt their tax payer’s hard earned money to Greece.But seeing the streets of Athens on the t.v. news channel, I doubt that whether this alternatives would be possible.
So,Greece had no choice other than to leave Euro. That will solve all the problem.The Economic recovery,which is only possible if Greece leave the Euro zone and devalue its own currency.The economic recovery will generate higher revenues,low spending and massive job creation.By this way,Greece can increase its export competitiveness.

What will happen if Greece stay with Euro? There will be mass protest,poverty,looting and rioting,rise of criminal activity and finally,a default followed by a civil war.People will have no choice but to throw out Mr.George Papandreou out of the country same way like Krgystan people throw out their prime minister.

Debt crisis in Greece

The 45 billion Euro bailout by IMF to Greece should be make entry to Guinness Book of World Record.After a month long fighting between France and Germany over Greece issue, the two country took interest on providing 15 billion Euro each to Greece.So,Greece must do their best to maintain financial credibility,avoiding IMF imposed interference in future.


The task for the Greek government is to keep public spending moderate,normalize budget deficit and keep an eye on tax fraud.

Greece is a part of the Euro zone for 10 years.Euro zone is not a club that any country will join and leave.But Greece should leave Euro zone as soon as possible.Leving Euro will will be catastrophy to it’s Bank.Greece’s attachment with Euro will lead to massive default which will eventually a major catastropy to banks and the country.Wheither to leave Euro or not, is going to be a decision of the century.

Now,the question is,Wheither this would lead to ultimate crisis for Euro?Should private banks be involved in rescue package?
Till now,Euro zone is little cautious towards Greece.A weak Euro is good for Germany.Let’s hope for the best.