Tuesday, May 18, 2010

Greece’s Bailout Heroes Arrive in Leaking Boats

by Kevin Hassett

May 17, 2010

The $1 trillion coordinated bailout to stave off a Greek debt default is fatally flawed and may well lead to another, deeper global recession.

While optimists hope the bailout will signal an end to the government debt crisis, the history of debt crises suggests it is just the end of the first act in what will be a long and drawn-out tragedy.

As part of the bailout, Greece is required to take tough medicine to get its fiscal house in order, such as cutting salaries and pensions of government workers. That’s easier said than done, given Greece’s long history of generously rewarding those who go to work.


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