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Why is the media acting as if the economic situation in Greece is apocolyptic? watch

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    The statistics show that the situation in Greece is fairly comparable to that of Britain, certain not significantly worse by any stretch of the imagination. It amazes me how the BBC act as if Greece is on the verge of becoming a third world country while talking as if everything here is fine and dandy, when the figures match up fairly nicely.

    The BBC was going on about Greece's terrible deficit, and it is pretty bad, but according to the IMF, Greece's debt is slightly less than the UKs, and statisics for unemployment show that Greece and the UK's level is pretty much identicle, both at around 7.5%.

    Also, both the UK and Greece's level of negative growth for 2009 have been roughly similar, basically our economies have suffered pretty much equally, and both countries have experienced a similar degree of delayed recovery.

    So, in consideration of all this, how can the situation in Greece be drastically worse than the UK? Why are Greeks acting as if it's the apocalypse, while British people are acting as if nothings happening. Do we put too much faith in Mr. Brown, while Greeks actually question their leaders more and what to pro-actively do something about it? Why are we not striking?
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    Greek debt is more short-term than the UK's, plus their debt is 130% of gdp to the uk's ?80%. (japan's is 200%!). Plus greeks like to take to the streets.
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    Because the Greeks take to the streets when their government takes them to the brink of economic ruin. Here in the UK, we just put up with Labour's criminal incompetence.
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    (Original post by FyreFight)
    Because the Greeks take to the streets when their government takes them to the brink of economic ruin. Here in the UK, which just put up with Labour's criminal incompetence.
    Greek's evade taxes as a national hobby whilst demanding huge government spending. They're hypocrites.
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    (Original post by FyreFight)
    Because the Greeks take to the streets when their government takes them to the brink of economic ruin. Here in the UK, which just put up with Labour's criminal incompetence.
    But I think the BBC is being quite biased in reporting on protests and strikes in Greece from the point of view of "oh look at them, look how bad it is there, lucky we're not like that hey?" when really the situation here is no better, and if the UK was populated by Greeks rather than British people, they'd be taking to the streets all the same.
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    I think its because its another country going down that also has the Euro, along with portugal and Ireland, that means that the value of the Euro will continue to go down which will evidently cause problems for the rest of the EU. Britain doesn't have the Euro and although it affects the Uk whether the Euro equals to the pound, Greece's problem is still major because its adding the strain on the Euro. This will affect every member state that has the Euro.
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    The Greeks are in the Euro zone, so they don’t have control over there own fiscal policy. We are in a much better position to recover.

    I secretly hope the Greek economy fails, which would destabilise the Euro Zone and severely damage the economies of other not-doing-so-well euro zone economies such as Spain and Portugal. That would put the brakes on creeping Euro federalism
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    It's good news, innit. Plus it's the first real stumbling block in ten years of the Euro.
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    1. It's because the Greek have a bunch of off-sheet liabilities, which they've kept hidden from the EU through the use of creative accounting. Moreover, they do not seem to have real long-term recovery plan.

    2. It's putting a real downward pressure on the Euro. Screw you Greeks, I'll have to pay more for my degree because of you .
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    I'm just amazed at how a small country of like 11 million apparently has the power to bring down the entire European economy. In fact I'm impressed.
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    (Original post by Nick Longjohnson)
    I'm just amazed at how a small country of like 11 million apparently has the power to bring down the entire European economy. In fact I'm impressed.
    http://www.crete-perfect-home.com/we...te/gbp-eur.htm

    It doesn't appear to be that big a deal for the Euro yet though.
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    The problem is fairly simple.
    If Greece had control over its monetary policy, it could do 4 things to solve the crisis: devalue its currency, cut interest rates, monetise debt and get a bailout. Because it's monetary policy is controlled by Brussels, Greece can't do 3 of those things, so a bailout by the rest of the Eurozone is the only way to prevent it from essentially going bankrupt.
    The issue that's arisen though is that the Eurozone doesn't have a bailout system in place - it doesn't have a clue how to go about it. Which is why there's now so much disagreement, primarily involving Germany.

    The UK is different because it could devalue the pound, cut interest rates and monetise debt.

    It's providing golden ammunition for anyone against us joining the Euro.
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    (Original post by AnonymousPenguin)
    http://www.crete-perfect-home.com/we...te/gbp-eur.htm

    It doesn't appear to be that big a deal for the Euro yet though.
    Of course it doesn't have the power to bring down Europe! The media's just found something new to report on, it'll blow over in a few weeks. Remember the riots that apparently burned half of Athens down? Yeah that was like 1 street that it all happened on. The media's got a knack for exaggerating things.

    Yes, the economy is bad, but its the same as its always been, its just that the EU has finally found out how much debt the Greeks actually have (which isnt actually that much, just more than expected). Plus Greeks tend to protest like mad when theres a chance that they may actually have to work for money, I mean how ridiculous is that!?
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    (Original post by Nick Longjohnson)
    Plus Greeks tend to protest like mad when theres a chance that they may actually have to work for money, I mean how ridiculous is that!?
    Well those random police riot buses that drive around Athens sure make it look like there's going to be a random riot any time now :/ .
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    Greece is by far the worst of the Eurozone economies, followed by Portugal and then Ireland and Spain. They are at a much bigger default risk than the other countries and this is reflected in the yields on their government bonds.

    What is apocolyptic about Greece, is first of all the risk that it will spread to other economies (this is the big worry internationally) and second of all the fact that (at least untill very recently) were seemingly unwilling to do anything in an attempt to curb the deficit. Adding this to the public sector strikes means that is very difficult for Greece to get things under control. In addition, they were discovered to have lied to the IMF about the state of their finances. The Eurozone hasn't weathered a crisis like this before and people are concerned about what the possible effects will be, for example how badly will the lack of monetary policy autonomy impact Greece.
    People were also wondering if Europe will bail Greece out (and now it seems they will) , but then there will be associated moral hazard which could have a seriously detrimental effect on the monetary union. Also, if the Eurozone were to allow Greece to go to the wall this would effect markets in other EMU economies. This is because part of the reason eurozone economies are attractive investments is because of the stability that is associated with EMU membership. Furthermore, bailing Greece out would put a strain on the countries that had to do so. So if Greece went bankrupt there is a possibility of extremely widespread consequences across europe.

    In terms of the value of the Euro, if it were to go down, that would be a good thing for countries such as Greece. The currency is overvalued at this moment in time and a depreciation (which we are beginning to see) could go a long way towards restoring competitiveness.
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    because:

    "greece may have problems paying off its debt" is not gonna sell as well as:

    "Greece to DEFAULT on debt" or something along those two lines.

    If people would listen to people who know a bit about this (e.g. Stieglitz's comment about how its, surprise surprise, stupid speculators) then the crisis wouldn be as bad as it is.
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    (Original post by danny111)
    because:

    "greece may have problems paying off its debt" is not gonna sell as well as:

    "Greece to DEFAULT on debt" or something along those two lines.

    If people would listen to people who know a bit about this (e.g. Stieglitz's comment about how its, surprise surprise, stupid speculators) then the crisis wouldn be as bad as it is.
    Ive always maintained that the media have certainly helped deepen and prolong the recession. Everyone just want to sell a hysterical article about how were all doomed.
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    (Original post by FyreFight)
    Because the Greeks take to the streets when their government takes them to the brink of economic ruin. Here in the UK, we just put up with Labour's criminal incompetence.
    Sort of, but Greeks also "take to the streets" when their government tries to bring them back from the brink of economic ruin. http://www.sacbee.com/business/natio...y/2528232.html
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    (Original post by yoyo462001)
    Ive always maintained that the media have certainly helped deepen and prolong the recession. Everyone just want to sell a hysterical article about how were all doomed.
    3000th!
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    (Original post by Fusion)
    Greek debt is more short-term than the UK's, plus their debt is 130% of gdp to the uk's ?80%. (japan's is 200%!). Plus greeks like to take to the streets.
    Source?
 
 
 
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