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Old 03-10-2010, 06:11 PM   #15
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Default Re: Bailing out the Greek economy futile, says FRENCH banking chief

GreeceFire Out? I Don't Think So...

Wednesday, March 10. 2010
Posted by Karl Denninger in International

The idiocy coming from the EU reeks of desperation: Greek Crisis Is Over, Rest of Region Safe, Prodi Says

“For Greece, the problem is completely over,” said Prodi, who was also Italian prime minister, in an interview in Shanghai today. “I don’t see any other case now in Europe. I don’t think there is any reason to think the euro system will collapse or will suffer greatly because of Greece.”


Prodi, 70, who headed the European Commission from 1999 to 2004, will teach at the China Europe International Business School in Shanghai. He said budget deficits are “a general problem for almost all the wealthy countries.”
No, really? You mean having the government be responsible for half of GDP is a problem, when everything that they actually obtain has to come, in the end, by taxing the citizens inside their borders?

The euro has weakened 5.8 percent against the dollar this year as concern Greece will struggle to finance its deficit eroded confidence in the European currency.

“Europe is more than happy,” said Prodi. “For the benefit of the European economy, the decrease of the value has been absolutely positive.”

As in the United States, European nations more-or-less index their entitlement programs to inflation. And like the United States, they hold most of the costs of these programs off their balance sheet, where that indexing is not visible (directly) to markets, never mind that those are promises for tomorrow, not today.

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