#Greek #Bailout

Does the Greek Bailout Pave the Way for the United States Of Europe?

By Mahdi Darius Nazemroaya

Illusions are at play in the modern tragedy that is the Greek economic system, particularly when it comes to notions of who benefits most from the latest bailout.

SAINT-JEROME, Quebec –— Modern Greek tragedy is at play, and so are illusions.

The big myth is that Greece overspent and the Greek government was reckless with its budgets, ultimately indebting Athens. It is true that Greek officials tried to gain influence and political support through spending. It’s also true that they signed lucrative contracts with local businesses.

Athens, however, is no exception here; this type of conduct has been displayed by politicians throughout the European Union and around the world.

The fact is that this is not what created the economic crisis in Greece. What is really taking place in Greece and the eurozone is something altogether different. The Greek bailouts appear to be part of a rigid restructuring of the EU that is placing other members under the control of Germany.

Red spray paint covers a French-language Bank of Greece sign to read ‘Bank of Merkel’ in reference to German Chancellor Angela Merkel in Athens, Monday, July 6, 2015.

FULL ARTICLE HERE

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Financial Meltdown, Protracted Negotiations: Will the Greek Bailout Deal Work?

By Kavaljit Singh

On Monday (3rd August) when the Athens Stock Exchange reopened after a five-week shutdown, the share price index plunged by more than 23 percent in early trading. The banking index covering Greece’s biggest banks witnessed the largest decline, down to its 30 percent daily limit. This was the worst stock market bloodbath in decades despite an ongoing ban on short selling in Greek markets. Only in 1987, its share index collapsed by 15 percent in the wake of Wall Street stock market crash, popularly known as “Black Monday.”

The massive sell-off on Monday was partially triggered by the release of three surveys which revealed that Greek manufacturing output has plummeted to its lowest level in July 2015. The surveys have indicated that Greece will suffer a further contraction in its economy this year. The investors are wary about the dismal outlook of the Greek economy which was in recession during 2008-14. In addition, there is general uncertainty over the country’s membership of the eurozone.

FULL ARTICLE HERE