Greece Bailout Plan Takes Shape - WSJ.com
Somehow, it's hard to see that even a 9% deficit (the Greek target per papers in early March) - arrived at with considerable pain - is anywhere near either "no deficit" or an "amortizing deficit".
If interest rates are at 7% and the deficit is greater than 100% of GDP (Greece's case), then almost the entire deficit is going to be made up of interest payments (note: 'interest', not 'interest + amortization').
Clearly Obama and Pelosi hope to take the US down the same road (high deficits, expanding role of government); but, how to create a private job market to absorb all the excess government workers (Greece especially) and the unemployed (US), is ever harder when the rewards for job creators are getting taken by government and handed over to those not working or not paying for their benefits (this includes the over-entitled retirees).
There's no clear picture of how Greece can turn itself around that I've read!
Monday, March 1, 2010
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