How did Greece get itself in such a financial mess? Is Germany sick of bailing them out?

How did this all start. Is it simply Greece spending more money than their income allows them to or is there more to it than that? How many times has Germany bailed them out now and is Germany sick of it? What do you think will happen to Greece this time and how do you think they will recover?


Most Helpful Guy

  • I'm half Greek and I have to say that the whole thing is actually much more complicated than people say here. I can't explain you the whole thing in detail because there's not enough space here and I lack the economic terminology in English .
    Contrary to what most Americans (especially the conservatives) believe, the crisis in Greece has very little to do with welfare programs. Norway, Denmark, Finland, Sweden, Iceland, the Netherlands and my other home country, Switzerland, we all have a very strong welfare-state (American republicans would probably call us socialists or communists or something idiotic like that). Yet, all these countries are doing thousands of times better than the US when it comes to the average citizen. We don't have real poverty in Switzerland. We don't have any beggars. We don't have crumbling schools and streets and bridges.
    Also, the US is in fact MUCH deeper in debt than Greece ever was. The US makes hundreds of millions of new debts every single year. The US debt is higher than the one of Greece, Italy, Spain and Portugal combined! The reason why America has not gone bankrupt long time ago is because the dollar is the leading currency in the world. That's why American politicians are so scared of the Chinese currency becoming the new globally leading currency one day. It would mean financial armageddon for the US. Furthermore, the US has borrowed unimaginable amounts of money from China. China is a smart player. They know they will never get this money back but that's okay for them because they like the power they gain this way. While you might think America is a strong and sovereign country, you can be glad that Obama doesn't have to suck Xi Jinping's dick. America is becoming more and more economically and politically dependent on China.
    Anyway. The reason Greece got into this mess is because of speculation. It is true that Greece was suffering from corruption and some debt but the debt wasn't much worse than in any other EU-country, for example England. However, German, French and British banks and large insurance companies started speculating with the Greek government debts on the international stock markets. It's very difficult to explain this in detail but basically, the same hedge fond assholes who brought America into a big crisis in 2008 are responsible for the crisis in Greece. Because of their speculation, the interest rates of the aiding programs from the EU became so high that Greece couldn't pay them anymore. Most

    • people don't realize that Greece paid its debts looooong time ago! Greece doesn't have any debts anymore to be exact. What Greece is paying is the interest of the interest of the interest of the debts. It's absolutely insane. The problem is not welfare, it's this fucked up capitalist system that works on interest. It makes very, very few people incredible rich and the large mass of people incredibly poor (both on national and on international levels). Anyway, when the bank crisis hit in 2008, these German and French and British banks and insurance companies would have gone bankrupt. However, their respective governments considered them relevant to uphold this capitalist system and saved them (same thing happened in the US). The tax payers were paying the mess that the BANKS made. Both in Europe and in the US. The normal Greek people never saw one single cent of these "aiding programs". They had to transfer all their money to these banks. To use an analogy... imagine this: I burn down

    • your house. You might have been a little lazy about repairing the house regularly, which makes the burning process faster, but the real culprit is me. I (the banks) burned down your house. Now, whilst your still in agony about your lost home, I come to you and say "this looks terrible. You can't just have this pile of ash here. It makes the whole neighborhood look like shit!" So I "offer" you the service of a couple of guys who build together your house again. Of course you have to pay these guys. Now, you can't do anything. You don't have any options. You can't just leave the house burnt down because I force you to let it be rebuilt. But you also can't stopping paying my building guys because you'd have a fight with me pretty soon. Whatever you do, you're fucked. It's absolutely crazy because it was originally ME who burned down your house. That's what it's like for Greece. And maybe you can now understand just a little bit why many Greeks hate Germany so much.


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What Girls Said 1

  • I think its because they have too many people working for the government and not enough people doing other jobs.


What Guys Said 5

  • I could litteraly write 1,000,000 words to describe it to you, but quite frankly i can't be bothered, it would be boring for you to read. So watch this.

    • Thanks mate I would not want to read 1,000,000 words the video is better. Ill watch it.

  • Greece grew its government, guaranteed all government workers a pension for life and has a lot of its population on welfare. Unemployment is high and there is little tax revenue. The politicians got voted in for promising more welfare and the government can't pay its bills because of that and its size... (Sound a little like the US?)

    • So by making promises it can not fill.

    • Show All
    • They shouldn't have joined the European union. But France and Germany both had their own problems and lent Greece money. So did the us.

    • I don't know much about the European Union but is part of the deal that you help out other countries if they need it.

  • They are not producting something. Their income just turism and they are spending money a lot.

    They should out of euro. Germany and EU can not feed them.

  • I think they will have to give up their country and merge with another one and become a city the taxes there are 120% of your annual income

  • Keep in mind what we see on the news or read in the papers is most of the times just a part of the story

    • Yes very true. Media always does that. Only lets you know what they want you to know.