Is Greece And Spain Becoming Failed States?

Protesters take part in a sit-in during a demonstration outside Madrid's Parliament, September 26, 2012. World markets improved slightly, Thursday morning, though investors remain worried about violent protests in Spain and Greece. Susana Vera/Reuters

Euro Turning Greece And Spain Into Failed States -- Robin Shepherd, The Commentator

Jobless rates in Spain and Greece have reached staggering proportions. And as long as these countries retain the euro, the prospects of recovery are slim.

Barely had European Commission President Jose Manuel Barroso declared yesterday that the worst of the eurozone crisis was behind us than the European statistical office, Eurostat, released the kind of unemployment data that could make your hair stand up on end.

Greece and Spain, the figures showed, now have jobless rates of 26 and 26.6 percent respectively.

The more you look into it the worse it gets. Since November 2011, the Spanish unemployment rate has risen by 3.6 percentage points while Greece's unemployment rate has soared by 7.1 percentage points.

The trend, in other words, is emphatically upwards. Few could be surprised if either or both of these countries passed the 30 percent mark by the end of this year.

Read more ....

My Comment: It may be convenient for some to blame the euro for the mess that exists in these countries .... but the sad fact is that it is the voters in these countries who voted in the politicians and their programs that put these countries into the mess that they are in right now. Before the crisis hit everyone in Europe knew that these countries had a culture of corruption, a habit of profligate spending and expanding entitlements that were not sustainable .... followed then by more spending and debt. So that when the perfect storm finally hit in 2008 .... no surprise .... everything collapsed.

Both Spain and Greece will not turn into failed states .... that in fact one day they will find their way .... my prediction .... I give it another 10 - 15 years. (I say 10 - 15 years because it is took that long for Russia to solve it's debt and financial/unemployment crisis when the old Soviet Union broke down).

Violent Riots Break-Out In Athens

Violence Erupts At Greek Anti-Austerity Protest -- Reuters

(Reuters) - Greek police fired water cannon and fought running battles with protesters hurling petrol bombs outside parliament on Wednesday during the biggest rally in over a year against spending cuts the country must approve to avert bankruptcy.

Nearly 100,000 Greeks waving flags and chanting "Fight! They're drinking our blood" packed the square outside parliament as lawmakers neared a vote on unpopular budget cuts and labor reforms that the government is narrowly expected to win.

Violence erupted when a handful of protesters tried to break through a barricade to enter parliament, prompting riot police to respond with teargas, stun grenades and, for the first time in an anti-austerity protest, water cannon.

Read more ....

More News On The Austerity Riots In Athens

Violent scenes outside Athens parliament as tens of thousands hold austerity protest - live -- The Guardian
Debt crisis: Protesters clash with police in Athens - live -- The Telegraph
Anti-austerity Greek protests get violent -- CBS/AP
Firebombs, teargas fly as anti-austerity rally turns violent in Greece -- NBC
Clashes in Greece ahead of key austerity vote -- BBC
Athens Erupts in Riots During Key Austerity Vote -- CNBC
Greek Protests Turn Violent Ahead of Austerity Vote -- Voice of America
Petrol bombs and tear gas as Greece votes on new cuts -- BBC
Greek Police, Protesters Clash Ahead Of Austerity Vote -- Radio Free Europe
Ahead of austerity cuts, Greek protests get violent -- Christian Science Monitor
Tens of thousands rally in Greece as austerity vote looms -- CNN

Syria, Libya, And Nigeria Is A Better Risk For Investors Than Greece

The Parthenon is surrounded by smoke from riots which started after a rally against austerity economic measures and corruption at Athens' Syntagma Square June 15, 2011. REUTERS/Pascal Rossignol

Greece More Risky For Investors Than Syria -- The Telegraph

Greece is considered a riskier place to invest in and set up business than war-torn Syria and Libya, according to a survey of finance directors.

BDO's annual 'global opportunities' survey found that the eurozone debt crisis remained one of their key concerns.

Almost half (44pc) of the 1,000 CFOs surveyed by the global business consultancy reported that the crisis had affected their expansion plans, with 16pc reporting a "large impact".

Only Iran and Iraq were considered more risky than Greece, while Spain, the eurozone's fourth largest economy, also made the top ten.

Read more ....

My Comment: My Greek friends in Montreal concur .... the corruption and cronyism in Greece is horrible .... and this is just the tip of the iceberg.

General Strike And Riots In Greece Over Anti-Austerity measures

Tens of Thousands March Through Athens -- Wall Street Journal

ATHENS—Tens of thousands of Greeks took to the streets of Athens Thursday, demanding the Greek government call off plans to appease international creditors with more spending cuts and tax increases.

Many of the demonstrators held banners imploring the government to "Sacrifice the capital funds of the European Union and International Monetary Fund, not the people" and "Stop the measures driving us into poverty."

Read more ....

More News On Today's General Strike And Violence In Greece

Clashes at Greek general strike as EU leaders gather for Brussels summit - live -- The Guardian
Violence breaks out at Greek anti-austerity demo -- Bloomberg Businessweek/AP
Greece faces anti-austerity shutdown as EU meets -- Reuters
Police fire teargas at Greek anti-austerity protest -- Reuters
Greece hit by new general strike over austerity -- BBC
Thousands rally, Greece brought to standstill by anti-austerity strike -- CNN
Greek Workers Walk Out in National Strike to Protest Austerity -- New York Times
Greeks strike to show cuts' effects -- UPI

My Comment: This Nobel Laureate sums it up perfectly.

Greek Prime Minister: Greece Is On The Verge Of Disintegrating

The Greek prime minister, Antonis Samaras, who highlighted the rise of the neo-Nazi Golden Dawn party. Photograph: Yorgos Karahalis/Reuters

Greek PM: Society Will Disintegrate Without Urgent Financial Aid -- The Guardian

Antonis Samaras says Greece's democracy is in danger, comparing situation to Germany's pre-war Weimar Republic.

Greece is teetering on the edge of collapse with its society at risk of disintegrating unless the country's near-empty public coffers are shored up with urgent financial aid, the country's prime minister has warned.

Almost three years after the eruption of Europe's debt drama in Athens, the economic crisis engulfing the nation has become so severe that democracy itself is now imperiled, Antonis Samaras said.

"Greek democracy stands before what is perhaps its greatest challenge," Samaras told the German business daily Handelsblatt in an interview published hours before the announcement in Berlin that Angela Merkel will fly to Athens next week for the first time since the outbreak of the crisis.

Read more ....

My Comment: A Greek friend of mind gave me his perspective on the Greek debt crisis. Even if 100% the debt is forgiven and a trillion dollars is given without conditions to Athens .... within a generation or two the same fiscal mess and debt crisis will return. It is only when the political/economic/social culture changes .... that is when Greece will have some hope.

What's my take .... I agree. What Europe is doing now is only feeding a heroin addict his preferred drug .... it has to stop .... Greece has to be kicked out of the Euro and go cold turkey for the fiscal and economic mess that the Greek government and it's voters have brought down on themselves. Will Greece disintegrate .... no. But the pain that will come about will educate Greece's young and the next few generations that the path of fiscal and political irresponsibility that their parents and grandparents followed is not the path that they themselves should follow .... that instead a more responsible and accountable path be followed and respected.

Protests And Riots Breakout In Spain And Greece Over Austerity Measures

European Markets Jolted Amid Protests in Greece and Spain -- New York Times

ATHENS — After a period of relative calm, European markets shuddered once again on Wednesday as protests erupted across Greece and demonstrators surrounded the Spanish Parliament for a second day to protest the austerity program of Prime Minister Mariano Rajoy.

Earlier this month, the European Central Bank announced its intention to buy unlimited quantities of debt from European nations, including the troubled economies of southern Europe. That kept the peace in the financial markets until Wednesday, when political instability spooked investors, with the Spanish stock market dropping 3.9 percent and even the German DAX falling by 2 percent. The interest rate on the 10-year Spanish bond, which had been declining, inched closer to the ominous 6 percent level.

Read more ....

More News On Wednesday's Protests And riots In Spain And Greece

Anti-austerity protests erupt in Greece and Spain -- Financial Post/Reuters
Protests against budget cuts in Spain, Greece rock world markets -- USA Today
Anti-Austerity Protests Reignite on Streets of Greece and Spain -- PBS Newshour
Greek workers strike; Spanish protests growing -- American Thinker
Exclusive: IMF, EU clash over Greece's bailout prospects -- Reuters
Athens descends into violence as 200,000 march against austerity -- The Guardian
Greece protests turn violent during general strike -- The Telegraph
Rage against austerity: Protesters in gas masks, helmets clash with Greek police -- NBC
Greek anti-austerity protesters clash with police in Athens -- L.A. Times
Thousands protest austerity measures in Greece -- CNN
Athens clashes as Greek police fire tear gas - -BBC
Spain's crisis flares again as AAA club scuppers bank rescue deal -- The Telegraph
Spain: rubber bullets fired at violent anti-austerity protest -- The Telegraph
Photos Of The Giant Protests Rocking Greece And Spain -- Business Insider

Greece Will Go Bankrupt By August 20

A protester raises a Greek flag in front of the parliament building in Athens during an anti-austerity rally Photo: REUTERS

Debt Crisis: Greece To Run Out Of Money By August 20 -- The Telegraph

Greece may run out of money and go bankrupt by Aug 20, a British government analysis of the ongoing eurozone crisis has warned.

The beleaguered country will have to refinance billions of euros worth of government bonds in less than a month and requires international assistance — which may not be forthcoming — to repay the money.

International inspectors arrived back in Greece on Tuesday to assess the country’s austerity programme with European officials warning that it was “hugely off track”.

David Cameron is now receiving daily written updates on the deteriorating situation and was warned earlier this week that a Greek bankruptcy in the next month is now a serious possibility.

Read more ....

My Comment: This is unbelievable .... but considering how inept and incompetent Greece has been .... not surprising. Will the members of the Euro zone bail them out again .... I now have my doubts.

Greece Ushers In A New Coalition Government

Antonis Samaras was sworn in as prime minister at the presidential palace in Athens on Wednesday. Yorgos Karahalis/Reuters

After Weeks In Limbo, Greece Ushers In New Government -- New York Times

ATHENS — Greece ushered in a new government on Wednesday that will put it back at Europe’s bargaining table, ending a seven-week leadership vacuum that had destabilized this already fragile nation and cast a shadow over the future of the entire euro monetary union.

Antonis Samaras, the leader of the New Democracy Party, was sworn in Wednesday afternoon as prime minister in a televised ceremony conducted by Archbishop Ieronymos of the Greek Orthodox Church. Mr. Samaras is preparing to work with two other parties that agreed to form a coalition. But whether his coalition government will last more than a few months, or succeed in renegotiating some of the harsh austerity terms of Greece’s multibillion-euro bailouts with its European partners, remained an open question.

Read more ....

More News On The Formation Of A New Government In Greece

Eurozone crisis live: Greece announces new government -- The Guardian
Debt crisis: live -- The Telegraph
Samaras sworn in as head of new Greek government -- CNN
Problems loom as Greece parties seal coalition -- Reuters
New Greek prime minister sworn in, will head coalition government -- L.A. Times
Debt crisis: Greece clinches coalition deal to battle bailout -- The Telegraph
Antonis Samaras sworn in as Greek prime minister -- The Guardian
Antonis Samaras sworn in as new Greece prime minister -- BBC

Greece To Hold New Elections As Talks Collapse

New Elections for Greece as Talks Fail -- Voice Of America

A statement on Tuesday from the office of Greek President Karolos Papoulias have declared talks aimed at resolving the political crisis hanging over the debt-plagued country a failure.

Socialist PASOK party leader Evangelos Venizelos says the country will now have to hold fresh elections - a vote that could be held next month.

Read more ....

More News On Coalition Talks Collapsing In Greece

Greece to undergo new election next month after coalition talks collapse in acrimony -- Washington Post/AP
Greek Coalition Talks Fail, Forcing New Election -- New York Times
Greeks head back to the ballot box in June -- USA Today/AP
Greece to hold fresh elections as coalition talks collapse -- The Guardian
Greece heads for new election in June after talks collapse -- The Telegraph
Greece to hold fresh elections after talks fail -- Euronews
Greece to hold new elections -- CBC
Markets plummet in response to Greek election announcement -- Globe and Mail/AP

Greek Coalition Talks Collapse, Elections Seen Likely, Euro Officials Begin to Weigh Greek Exit

Greece Appears Headed To New Elections As Talks Stall -- Washington Post

BERLIN – Greece appears headed to new parliamentary elections next month, further delaying its efforts to meet international demands to overhaul its economy, after leaders of the country’s major political parties declared little hope Sunday for a last-ditch effort to form a coalition government.

The failure of the leaders to pull together a coalition brings Greece one step closer to leaving the 17-country bloc that uses the euro currency, although much will depend on the new elections. Voters last week overwhelmingly chose parties that are against the painful austerity measures that are a condition of the bailout keeping Greece from bankruptcy. Opinion polls since the election show those anti-austerity politicians gaining even more support.

Read more ....

Update: Euro Officials Begin to Weigh Greek Exit -- Bloomberg

My Comment: The Euro is unraveling before our eyes. With billions owing .... and the Greek government (and people) having lost the stomach to pay it .... the Greeks are now positioning themselves to default on their obligations and to eventually leave the Euro. This will be a disaster for Greece, and a major hit for the rest of Europe and the international banking system.

Greek Deputy PM: The Country Will Run Out Of Money In Six Weeks

Head of Greece's Syriza party Alexis Tsipras (C) leaves the presidential palace after a meeting today. Photograph: John Kolesidis/Reuters

Greece Will Run Out Of Money Soon, Warns deputy prime minister -- The Telegraph

Greece's deputy prime minister has said the country will run out of money in six weeks unless it honours its bitterly-disputed EU bailout deal.

Speaking exclusively to The Sunday Telegraph, Theodoros Pangalos said he was "very much afraid of what is going to happen" after Greek voters rejected the deal in elections last Sunday.

"The majority of the people voted for a very strange mental construction," he said. "We want to be in the EU and the euro, but we don't want to pay anything for the past."

Read more ....

Update: Greek government talks end without breakthrough -- CNN

My Comment: I have been to Greece on a number of occasions .... and yes .... it's sad to see them going through the process of committing national suicide.

Greek Leaders Fail To Form Coalition

Greek Leaders Fail To Form Coalition As Poll Shows Radical Leftist Would Win New Election -- The Telegraph

A third attempt to forge a coalition in Greece has failed as the leader of a radical party committed to a complete revision of the country’s critical EU bailout refused an invitation to joint rule.

The latest round of talks failed after the left wing leader who wants to renegotiate the country’s critical EU bailout refused to join forces with parties that support the austerity measures.

Alexis Tsipras, leader of the Radical Left Coalition or Syriza, said his presence in the proposed coalition was merely being sought by more established, pro-bailout parties as a “Leftwing accomplice”.

Read more ....

Update: Greek talks on forming a government fail; new election likely -- L.A. Times

My Comment: The radicals are just an election away from power .... riding high in the polls, they are well positioned to form the next government. My prediction .... they will win the next election, and because of their platform, they will be kicked out of the Euro soon after. And while many Greeks will believe that this will save them from the hard austerity measures that have been adopted this past year .... I say they have seen nothing yet.

Parliamentary Elections In Greece -- News Roundup

Greek Elections Shake Up Parliament -- L.A. Times

Greece's conservatives win the most seats but fall far short of a majority, causing a political deadlock at a time of heightened economic unease.

ATHENS — Greek conservatives won at the polls Sunday in national elections but fell far short of enough seats to take power, deadlocking Parliament and deepening unease over the country's economic future and its continued membership in the Eurozone.

With 72% of the votes counted, Antonis Samaras and his center-right New Democracy party had 19.7% of the vote, giving them 111 seats — far short of the number needed to secure an outright majority inGreece's300-seat Parliament. Samaras, 61, has three days to try to form a coalition before passing on the task to the runner-up party.

Read more ....

More News On Greece's Parliamentary Elections

Angry Greeks redraw election map -- AP
Greeks punish main parties, risk euro exit -- Reuters
Greek governing parties 'lose majority' at polls -- BBC
Voters punish Greece's centrist parties, setting stage for new government -- CNN
Greek voters vent anger towards austerity at ballot box -- The Guardian
Exit Polls: Top Greek Parties Suffer Major Election Losses -- Voice of America
Greek voters flock to anti-bailout groups, leaving no parties with enough seats to form a government -- New York Daily News/AP
Greek Election Surprise Rejects ‘Barbarism’ of Bailout Austerity -- Bloomberg Businessweek
Greeks punish main parties, risk euro exit -- Euronews
Greece's direction murky after elections -- UPI

Greece Votes For A New Government Today

Old Guard in Greece Faces Challenge in Elections -- New York Times

ATHENS — Greeks went to the polls on Sunday in parliamentary elections that are expected to be the most pivotal in the country’s modern history, determining not only its future in Europe but its prospects for recovery from a devastating debt crisis.

Voters are expected to send a message to the traditional governing parties, the Socialists and the right-center New Democracy, which are being blamed for the country’s economic woes.

Sunday’s outcome, both here and in France, could resonate far beyond the Continent, possibly triggering fresh upheaval in the euro zone.

Read more ....

Update: Angry Greeks vote in critical election -- AP

My Comment: A friend of mine (who is Greek) returned from Greece last month. As she put it to me politely .... the Greek economy has collapsed, with real unemployment numbers approaching depression levels.. It is with this background that Greece is voting today.

The Financial Mess That Is Greece Continues

Greece Handed €8bn Aid Package Lifeline But Euro Concerns Remain -- The Telegraph

Greece was handed a lifeline on Friday night after international lenders finally released an €8bn (£6.95bn) aid package for the beleaguered country, kicking off a crucial weekend for the future of the eurozone.

Although the agreement will allow Athens to avoid imminent default, a report leaked at the Brussels summit on Friday night suggested the terms of the second Greek bail-out would have to be ripped up in order to stabilise the country.

The report – prepared for the troika of the IMF, European Central Bank and European Commission – suggested Greece’s economy has deteriorated to such an extent that lenders would have to find €252bn in loans by the end of the decade.

Read more ....

More News On Europe's/Greece's Debt Crisis

Funds Approved for Greece but Leaders Remain Divided -- New York Times
Eurozone Closer to Cutting Greece's Huge Debts -- ABC News/AP
Greece Gets New Batch of Bailout Loans -- Time/AP
Greece may need 60 percent bond writedown; EU at odds -- Yahoo News/Reuters
Eurozone crisis: live blog -- Financial Times

My Comment: What gets my blood boiling is when I read stories like this one.

Strikes, Riots, And Protests In Greece Today -- News Roundup

Strikes Paralyze Athens Amid Violent Clashes -- Voice of America

Protesters and police have clashed outside the Greek parliament as a massive protest and general strike shut down Athens. Both public and private sector unions are backing the industrial action against the government’s plans to slash the salaries of public workers and raise taxes. The government says the measures are vital if it is to receive the next slice of bailout money.

Read more ....

More News On Today's Violence In Greece

Protests in Greece grow violent as austerity plan nears vote -- L.A. Times
Greece unrest: Athens clashes amid general strike -- BBC
Greece erupts as police clash with thousands marching on parliament -- The Guardian
Greece strike begins with thousands on streets -- AFP
Greece approves austerity bill on first reading -- Financial Times
Biggest Strike Yet Brings Greece to Halt -- Time
Travel chaos as Greece declares 'the mother of all strikes' -- Daily Mail
In Greece, protests, desperation, and 'the mother of all strikes.' Which way forward? -- Robert Marquand, Christian Science Monitor
Greek protesters hurl firebombs at police -- MSNBC

Teetering On Bankruptcy, Greece Decides To Go On Strike

Greece Staggered By 24-Hour Civil Servants' Strike -- NPR/AP

Greek civil servants walked off the job on a 24-hour strike Wednesday, paralyzing the public sector in a protest over ever-deeper austerity measures applied as the government struggles to avoid a catastrophic default.

At least 16,000 protesters converged in central Athens, and a crowd of about 10,000 gathered in the northern city of Thessaloniki. They chanted slogans, banged drums and blew whistles.

Read more ....

More News On The Greek Crisis

Transport shut down as protesters and police clash in Athens -- Deutsche Welle
Bloodied but defiant: 10,000 Greek strikers and police in running battles as debt-ridden country starts a 24-hour walkout -- Daily Mail
Marchers shut down central Athens in financial protest -- CNN
Greece strike: Police and protesters clash in Athens -- BBC
Greece Shut Down by Nationwide Strike -- Wall Street Journal
Greece braces for strike against spending cuts -- L.A. Times
Greece austerity strike cripples country -- Washington Post
Outraged protesters clash with police in Greece (Photo gallery) -- MSNBC

Greece has weeks left before bankruptcy -- Bloomberg Businessweek
Greece Has Cash to Meet Needs Until Mid-November, Finance Minister Says -- Bloomberg
Greece Insists It Can Pay Its Bills a Bit Longer -- New York Times
Greek default believed to be just a matter of time -- Chicago Tribune
Greece has weeks left before bankruptcy -- AP

Getting Ready For Greece's Bankruptcy

Europe Braces For Impact Of Greek Default -- MSNBC

With Greece just weeks away from running out of cash, the European Union is fast running out of options to save the currency union and head off another global recession.

The focus is now shifting to once-unthinkable scenarios that await Europe if the Greek government defaults on its debt.

Read more ....

Update: Europe's debt crisis: 5 things you need to know -- CNN

My Comment: This debt crisis is not going to be resolved in an orderly fashion. Like wars and conflicts ... it is easy to plan on what to do, but when events unfold a different result always happens. My prediction .... living and making ends meet in Greece will be difficult for many by the end of this year.

Hard Default For Greece Expected Soon: Senior IMF Economist

Senior IMF Economist Expects Hard Default For Greece. Soon.

According to a senior IMF economist who wasn’t identified, Greece will likely face a “hard default” well before March 2012.



It could happen during 2011, and perhaps after the current round of negotiations. This acknowledgement from someone very close to the matter in a body that is heavily involved in the bailout, is quite worrying.



The current talks are around the first bailout, agreed more than a year ago. Greece definitely missed its targets. The EU /IMF delegation suspended its visit to Greece after discovering that the deficit will be higher. They are expecting fresh steps to be taken by the Greek government.



Read more ....



My Comment: All good things come to an end, and for Greece .... it is going to be a crash. Unfortunately, the instability and crisis that it will produce (even more than now), will have dire consequences for Europe and the stability of the continent.

The Decline Of Athens

Athens Mayor Tells Of Crime And Violence In Europe's Oldest City -- The Guardian

Giorgos Kaminis says image of Greek capital is 'deplorable' and a far cry from the orderly city that staged the Olympics in 2004

Not far from the faceless building that houses Athens city hall, a banner flaps in the wind. For those driving up Sofokleous street, it is difficult to miss. "No to drugs and prostitution", the hand-painted sheet proclaims. "No more tolerance".

Shopkeepers say the banner was erected before Giorgos Kaminis, the city's soft-spoken mayor, took up the post in January. But it is hard not to see that, since then, the vices have got worse: a little further up the road Somalian prostitutes proposition pedestrians at all hours; a little further down, past beggars who cry "I'm hungry", young men crouch in doorways doubled over with needles in hand.

Read more ....

My Comment: I visited Athens almost 20 years ago .... and it is hard to see this great city going through the troubles that it is going through right now.