Thursday 9 July 2015

A Simple Guide to the Greek financial Crisis. . .



It has been some time on my blog since I have discussed an important issue, so as we reach the end of the Greek financial Crisis (again). I think it is time for me to explain to everyone why the various leaders of the EU countries and Greece find themselves in the present situation. You see it has been ongoing for a long time and just when you think it will end the deadline moves a few months weeks and now days.

So how did this Crisis Happen

Well think of Greece joining the EU as a young student getting its first credit card.  You get a card and get to spend loads of money as long as at the end of the month you pay back a small sum. Well after a bit the bank lets you borrow more money because you have paid back the minimum payments for a few months.  You can then go off and spend more money and pay back a bit more. The bank now thinking it will make loads of money out of you in interest lets you have even more money which as a young student you spent (Yes its great). But after a while you end up owing more than you earn in over a year and the only way to pay it back is to borrow a bit more. This is fine until the bank says NO SORRY that is it you have really reached the limit for now, it then all goes horribly wrong because you have spent all the money and cant pay the bank or anything or anyone else either.  Well this is exactly what has happened to Greece they had a great time spending all the money but it has now all gone and gone wrong.

So why can’t they sort it out

Now you would think the top European bankers and leaders of the various countries in the EU would sort this out easily but there are a couple of major issues that none of them will admit. The first of these is Greece is Bankrupt and giving them a bit more money will only make it all worse in the future for everyone. Secondly the banks should never have lent all that money to them in the first place without checking that they were not having a party and spending the money on a good time.  The terms and conditions of being part of the Euro are quite strict but were I suspect not entirely stuck too by either side as both parties thought they were on to a good thing, Greece getting lots of money to spent and the banks convinced they would make loads of interest at the Greeks expense.

Neither party thinks it’s their fault and now expects the other side to sort it out but the truth is neither side can. They have to work together to solve things but it is likely they will just shout and wave fists.  Greece needs to leave the Euro Zone and the banks need to help a bit for them to do it. And in the long term Greece needs to repay the banks although it will be a long long time before that happens.

I think they need to talk to me but  they all think they know better and would call me an IDIOT. Folk do that. . . . .  I for one have never spent what I don’t have so get by OK but don’t have the latest Bling, This though is not the way of modern economies or banking.


All I will say is that it will not end well or quickly.

Sorry there were a few errors in spelling (again) so I hope it is better now and makes more sense.


OOOO the pic I will discuss the Creature from the Black Lagoon. . . Soon 

13 comments:

  1. I think the Greeks are very silly for smashing all their plates up after having their tea instead of just using a dab of fairy liquid.
    The adverts on TV tell us that it lasts even longer so they would have saved countless millions of Euros on new plates if they had just used some washing up liquid......

    .... or paper plates. Paper plates can still be thrown on the ground and used again. They dont make a CRASH noise, but there is probably an app for that and most apps only cost a couple of pounds anyway.

    It really is simple when you think about it.

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    1. Ah they use special plates Mr H that are made specially so they can smash them. They are designed to smash and make a good smash sound a bit like the chairs in old westerns that folk would hit each other with. You could never do that with a real chair not even one from IKEA it would be very dangerous. Paper plates would just not be the same. Maybe the Greek negotiators should take some of their plates to Brussels and although they might not get any money they could make a dramatic exit from the Euro with plates flying in all directions.

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    2. We only use our special plates when relatives come round. Christmas and that sort of thing. If I went around smashing plates Mrs H would go nuts... more nuts than I usually make her.

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    3. Maybe you should Have a Greek themed night at the site Mr H. you could get some of their special plates and serve Austerity Pie and Chips, Greek Yoghurt and Euro Pudding and a naughty German wine.

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  2. I was trying to explain the whole Greece thing to the Lil man, but he just kept complaining that his head hurt every time I opened my mouth. Just explained it to him using your analogy and now he understands what it's all about, so thanks for this Mr Z.

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    1. You can remind him of this when he gets his first Credit Card. Although I suspect he will be good and keep all his money safe and all in gold just in case.

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  3. OoooOOoooOOOOooohhhh! THAT's what's going on in Greece. I just thought that a bunch of body-hair-rich but fiscally-poor dudes, drunk on Ouzo decided to run a country, then, based on dancing with their arm around Germany and saying "Ay" a lot while looking down and stomping with their arm outstretched, got into the EU and then realized they were in charge of a country and doubled down on the Ouzo. It's good to know things are much more sane...or not.

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    1. Well the Greek intentions started well, spending money to improve the lot of the common man. only they did not actually build in any way of paying back the money. And the Greeks dont like paying tax (who does). Anyway it looks like the whole thing might just be put off a bit longer and the Euro Zone will lend them a bit more money so they can make the minimum repayment again.....

      EU economics should not be looked at too closely as they are rubbish and there are lots of folk skimming a few million Euros off the top of various budgets.

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  4. So ... does Greece now belong to other people, and so the Greeks need to leave and let the New Greeks move in, the owners? I don't see what is hard about that to figure out, I did it far faster than Lincoln's Gettysburg Address, or as this is called, Lend A Coin & Get Yourself New Address

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    1. Greece is still Greek Mr ESB, but if the EU send in the bailiffs the rest of us might run off with the good bits. I might demand one of those sunny beaches.

      It is a bit like folk buying Scottish islands yes you own it but you cant do a lot with it and then you find there are are all sorts of charters than mean you cant even eat all the sheep. So in the end you get bored and sell it again.

      Not that I was planning to eat the Greeks that would not be nice and anyway they might be a bit chewy with all that sitting in the sun.

      It would be like eating a Gettysburger and Fries

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    2. Get your Gettysburger before its emancipated, or ate by some other man. I couldn't think of a Lincoln pun.

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    3. There must be some way of Lincoln the two things together?

      HAH HAH ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha hah haha h hahah ahah ah ah ahah ah hA HA HAH AHAH AHAH AH AH AH AH AH A

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