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Friday, March 02, 2012

The mistery of the Greek debt

It is a mistery to me, how a country that began with a total debt of 300 bn euro in 2009 (112% of GDP), received as Bail out from Europe
110 bn May 2010
109 bn July 2011
130 bn March 2012
(total 349 bn. euro)and now in March 2012:

The debt is 160% of GDP
The creditors are asked to a "hair cut" of 75%

By a simple mathematics, if the "hair cut" had been done in 2009 it would have cost to Europe "JUST" 300 Bn...and would have saved so much suffering to the population AND a complete default as the Europeans are asking now...

Why?

Simply because the debt changed hands.
In 2009 the creditors were MOSTLY Germany and France.
I mean German and French banks.
Now with the bail out the above banks have got rid of the unwanted debt, the boiling potatoes has passed from one hand to the others and the actual creditors...can lose 70% of their money.

But who are the actual creditors?
Europe.
And who is Europe?
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