Comments on: Europe agrees to bail out Greece, sets precedent for euro’s destruction. http://sovereignspeculator.com/2010/03/16/europe-agrees-to-bailout-greece-sets-precedent-for-euros-destruction/ Thoughts on the markets and the decline of the west Mon, 20 Dec 2010 21:29:55 +0000 http://wordpress.org/?v=2.6 By: PEJ http://sovereignspeculator.com/2010/03/16/europe-agrees-to-bailout-greece-sets-precedent-for-euros-destruction/#comment-8765 PEJ Tue, 16 Mar 2010 13:11:01 +0000 http://sovereignspeculator.com/?p=4308#comment-8765 "Officials from the 16 countries using the currency worked out a strategy for emergency loans in case Greece’s plan for 4.8 billion euros ($6.6 billion) in tax increases and wage cuts fails to stave off fiscal disaster." => The question is: since they explicitly mention that tax won't be increased and wages won't be cut, how lending more money will solve the problem of not being able to pay it back? “Officials from the 16 countries using the currency worked out a strategy for emergency loans in case Greece’s plan for 4.8 billion euros ($6.6 billion) in tax increases and wage cuts fails to stave off fiscal disaster.”

=> The question is: since they explicitly mention that tax won’t be increased and wages won’t be cut, how lending more money will solve the problem of not being able to pay it back?

]]>