Monday, February 15, 2010

Replacing Sun?

Rio Carnival 2010 in Brasil, photo credit: gazeteport

Of late, there is a very dangerous weakness in some euro states: Greece and its debt. But analysts warn that Greece is not the only eurozone member to create headaches. However, a few more is on the black list!

Italian-based unicredit researchers said that a lot depends on how the Greek crisis will be solved. To the financial columns which I intensely read, Greece needs to borrow €54 billion from bond markets to plug its budget gap. Then
IMF Head Dominique Strauss-Kahn said that the eurozone members must help Greece in a meeting held last week. With that, Reuters had also earlier reported a senior German ruling coalition source as saying eurozone countries had decided in principle to help Greece.

What I ask is if there are any solutions that do not require a bail out? In a wider perspective, said that there are a few more countries in the same boat for the same reasons at the edge of financial crisis. Besides Portugal and Spain, even Italy, Ireland, UK to be repeated oftenly. Germany..? Who will bail out Germany if helps?

While pondering those questions, the figures of today in the money markets realized as follows:

-- €/$ parity was again down to 1.3588
-- Lower stock markets especially in Germany, France and Italy

And, German Finance Ministry today stated their rejection decision the idea of setting up a special fund to bail out eurozone countries like Greece that run into fiscal trouble because budgetary problems must be solved at the root. Read the rest of article here

What puzzled me is, no money but only moral support will be given to Greece by EU? May we evaluate this is not a catastrophe but a period of discomfort? A side note, a much broader strike is planned in Greece for feb 24th to the latest news.

With this difficulty in our neighbor, the growing appetite of BRIC countries (Brasil, Rusia, India and China) is noteworthy in the rest of the world. What do you think, the sun will be rising in the east?

To answer my question from the title, yes. In the east.


  1. I don't think moral support will help the Greek economy, but rather a correct performance and strict directives. This is what the European partners surely meant, not financial support. Things are not easy for any of them, either. German economy's figures are stagnant and France just grew by 0.1% (and these are the best ones).
    General strike will certainly show the politicians that the population knows they're not doing it right, and what the social unrest is like, but it will solve nothing. It's time to work hard to fix things and unfortunately, this will mean a lot of sacrifice for people who are not guilty for their governors' inefficiency.

    I agree with you about the power of emerging countries, Nihal. But I'm afraid it's not their time yet.

    Let's hope for a financial recovery. Cross our fingers and toes so that everything is ok with you and readerships!

  2. Great photo, full of joy like at a festival.

  3. @ Glennis: Welcome to my page and many thanks for your comment. Yes, carnival=a festival, like being at a culturerama:)