Saturday, November 5, 2011

Reuters on Greece's tiny debt load

Pedro da Costa, from Reuters, in their Macroscope blog, says that:
"No, that is not a typo in the headline. Greece has long been the focal point of Europe’s crisis. It was the first country to reveal some cracks in a monetary union that lacks a fiscal authority to back it. Indeed, Greek politics were dominating the headlines on Friday, with news that the prime minister had survived a confidence vote in parliament restoring a momentary sense of calm to a still very dramatic situation.

However, Greece’s actual debt load is only large relative to its own small and struggling economy. In the larger context of the euro zone, the actual amount of debt being haggled over is rather puny."
The rest of the post here. I can't but agree with him, in particular taking in consideration the expert he cites.

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