So the word out there is that Greece is in financial trouble...putting it in an individualistic perspective, this person had lost its money ; the value of its assets had dropped so much that he was practically left with nothing...in the wake of this event, he was given a loan by an international bank...
Now the payback period is drawing to an end and the values of his assets have not risen enough or the funds borrowed have not generated enough return to pay back the principal. In the wake of this event, his friends are considering different options to help him out.
- should we offer him more money? --> but if he can't repay the money now, does it make sense to increase the size of the bill?
- should we give him more time? --> is there where the time value of money comes in; money today is worth more than tomorrow?
The ECB is against rolling over the debt for Greece. EU countries are faced with a harsh reality that cannot be ignored. They are all inter-connected stated and thus Greece had to be helped, but HOW? - Privatization. It seems there are parties opposed to this idea. I wonder why that would be. - if the shares of public companies were sold to private companies( that have the incentive, motivation and resources to make profits), this would help the Government pay back some of its loans. But will privatization increase the bill for the tax payers?
The country is in need and the people of the country need to pull their socks up and get it together because if the government collapsed because of a failed banking system , the country they call home would be in ruins.
An idea was proposed to have technocrats ( experts of respective fields) run the country. But this was dropped. Why? Maybe because it means politicians wouldn't have a job anymore?
No comments:
Post a Comment