Greece bailout

Greece is getting a bailout, but it mainly benefits bondholders, not the country itself. The financial markets attempt to protect themselves. Big surprise, eh? Maybe a default would have been a better choice for Greece. No one expects the bailout will solve much, and Greece faces massive budget cuts and equally massive social protests.

Look, pensions there are bloated and unsustainable. They get retirement at 55 with 80% pay. Plus the government is hugely corrupt. But investment banks happily greased the way for Greece to fail, extending dicey loans and bonds, arranging accounting tricks to make sick books look healthy, and so on.

World markets are down big today, probably in reaction to Greece and the obvious face that Portugal, Spain, and even the United Kingdom could be next.

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