For the Love of writing...
A timeline for Greece.
There is a great management methodology to solve/”unsolve” problems and that has just got a name. It has been called “merkeling through” based on German Chancellor Angela Merkels attitude towards the Greece issue by continuously postponing the decisions that have to be made. (Solve problems by postponing them and hope that the problem solves itself out).It would have been more than 5 months since the Greece issue came to limelight and Germany knew it had to play a lead role if any solution was to be found out. Read my earlier post, “Germany it’s time to redeem your past.” Unfortunately Germany chose the other way and now we are again on the brink. Well not exactly we, but Greece, Portugal, Spain, Italy and then maybe the British.
If 2008 was a year of ‘too big to fail’ companies failing then 2010 may well be the year of nations failing.
Here is a time line for some of the payments that Greece has to make.
On the 6th of May there is approximately Euro 20 billion of payments that has to be made. As of today Greece hasn’t got that kind of money in its banks. The money has to be raised through IMF and the Euro Zone members. And in the Euro zone it is Germany that has to lead the way. But the problem is German population is strictly opposed to make any such payment for a nation that cheated its way into the Euro zone whereas Germans themselves had to undertake several restrictions to enter it. Germany has a local election scheduled on the 9th of May and it is very unlikely that Germany will cough up the cash before the election gets out of the way.
The solution, rather, an outcome could be Greece defaulting on the loans and the Euro Zone testing the reaction of the world markets just like what the US did with letting Lehman go bust and bailing out everyone else after Lehman. If the markets react very sharply, all other PIGS(Portugal, Italy, omit Greece and Spain) nations would have money on the table before their due dates near.
Guys these are the times when you got to watch the wave rolling from nation to nation in the markets.