The banks were not allowed to fail. Greece is not allowed to fail. In our classrooms the children are not allowed to fail. Failure is a necessary part of life. It is essential if capitalism to succeed.
The lenders should not have provided the money and the Greeks should not have borrowed so heavily. Both should lose.Visitors to the Greek islands this year might conceivably begin their holidays with euros in their wallets and go home with drachmas. In between might come a tumultuous period when capital controls lead the cash machines to run dry – and the government suspends all movement in and out of the country. Travel agents have sought to play down any concerns and reassure British holidaymakers. A spokesman for Thomas Cook said that all contingency plans were in place, adding: “We’re prepared for any scenario." The Association of British Travel Agents (ABTA) said there was no need for anyone presently heading for Greece to rebook for another destination. “Any switch to a new currency would take time and Euros would likely be accepted in the interim,” said a statement from ABTA. “This is an unusual situation - but the industry is experienced in handling unusual situations.” The one piece of advice is that travelers should take enough cash in euros to last for their entire holiday – just in case the banks collapse halfway through a summer break. Meanwhile, frantic efforts are underway to secure a deal between Greece and its creditors before the IMF payment falls due in 10 days’ time. The aim of the talks is to release enough of the €7.2 billion (£5.1 billion) in Greece’s existing bailout fund to allow the country to avoid a default. Popular support for the euro is creaking as the economy is thrown back into turmoil. More than 210,000 Greek families have applied for meal coupons and free electricity since Syriza launched a humanitarian aid programme in April. The jobless rate is also creeping up. Over one out of every four Greeks remain out of work. Of the hordes of unemployed, over 70pc have been without a job for over a year. Athens and its environs hold the ignominious title of the long-term unemployment capital of Europe - worse than the poorest parts of rural Slovakia and Latvia.
The lenders should not have provided the money and the Greeks should not have borrowed so heavily. Both should lose.Visitors to the Greek islands this year might conceivably begin their holidays with euros in their wallets and go home with drachmas. In between might come a tumultuous period when capital controls lead the cash machines to run dry – and the government suspends all movement in and out of the country. Travel agents have sought to play down any concerns and reassure British holidaymakers. A spokesman for Thomas Cook said that all contingency plans were in place, adding: “We’re prepared for any scenario." The Association of British Travel Agents (ABTA) said there was no need for anyone presently heading for Greece to rebook for another destination. “Any switch to a new currency would take time and Euros would likely be accepted in the interim,” said a statement from ABTA. “This is an unusual situation - but the industry is experienced in handling unusual situations.” The one piece of advice is that travelers should take enough cash in euros to last for their entire holiday – just in case the banks collapse halfway through a summer break. Meanwhile, frantic efforts are underway to secure a deal between Greece and its creditors before the IMF payment falls due in 10 days’ time. The aim of the talks is to release enough of the €7.2 billion (£5.1 billion) in Greece’s existing bailout fund to allow the country to avoid a default. Popular support for the euro is creaking as the economy is thrown back into turmoil. More than 210,000 Greek families have applied for meal coupons and free electricity since Syriza launched a humanitarian aid programme in April. The jobless rate is also creeping up. Over one out of every four Greeks remain out of work. Of the hordes of unemployed, over 70pc have been without a job for over a year. Athens and its environs hold the ignominious title of the long-term unemployment capital of Europe - worse than the poorest parts of rural Slovakia and Latvia.
Nominal GDP is now set shrink to its lowest level since 2003 this year, the riches of its early euro boom years all but wiped out. It is the deepest depression suffered by any developed economy in the modern era - eclipsing that witnessed in 1930's America.
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