Today's Coming Crisis Movie

Monday, August 27, 2012

Europe drawn back to its first problem: Greece....That's what happens if you ignore the Problem by throwing Money at it

(Reuters) - The euro zone debt crisis was born in Greece. Nearly three years and two bailouts on, Europe must decide whether to give the country yet more help or cut it loose.

For all its complexities, Greece's problems essentially come down to three simple questions: Can the country return to growth? How big are its debts? And will the first ever be enough to pay off the second?

Put like that, one might wonder why policymakers have found a solution so elusive. But as ever, the devil is in the detail, and in Greece's case the details are devilishly difficult.

That is why ongoing efforts by the European Commission, the European Central Bank and the International Monetary Fund -- together known as the 'troika' -- to work out Greece's long-term growth and debt reduction prospects are so critical.

Everyone from German Chancellor Angela Merkel to ECB President Mario Draghi and Greek Prime Minister Antonis Samaras -- who wants two more years to make the cuts demanded of him -- is nervously awaiting the outcome of the troika's report, which is expected in late September or early October. Read More