The Greek Debt Crisis Explained | Epic Economics
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So you want to tell us that the EU was not aware about Greece's altered financials? Like in 1999 you cant enter but 2002 you seem fine? Any alarm?
They knew the EU-Commission knew, Germany knew and France knew. But Germany and France “convinced” the EU-Commission to let Greece in and even blocked further investigations.
Yes, because the EU depends like any other body, upon a sovereign government telling the truth. Successive Greek governments lied about their finances - and when an EU team was put into the government to oversee the facts, they found the fraud. The Greek government even tried publicly to prosecute the EU official (who happened to be greek) for stealing state secrets. The stated deficit was about 7% and in fact it was about 19% .
@@grahamo22 I understand your view but I cant help but question the "depends upon telling the truth" part. My opinion is that It was a red flag and should have been noticed.
morgan & sachs and other loaners with greece hide its debt. (could have been one of usa's secret plan to destroy the EU)
@@giannisk4622 😂 don’t worry the then Chancellor of Germany and President of France knew about the irregularities in Greece finance and blocked the EU Commission from further investigation so that Greece can join. The rules that Greece broke were chosen with no economic reason eitherway, so nobody really cared. Not to forget that Germany was one of the first countries that broke the rules and is now breaking more major important Euro rules that are economically more destructive for the whole EU, than the rule that Greece broke. As the Central Bank can easily fix what Greece has done but also what Germany France Italy Spain Portugal Island Slovenia also has done, as they just reached higher Debt to GDP ratio.
But on top of that Germany has undercut the Euro Inflation target over decades, meaning they undercut every euro member on the markets destroying their economy by wage dumping, which also destroyed Germanys own domestic market in exchange for a growing export market.
One thing this video missed. The bailout money didn't flow to the Greek govt. It flowed to the private creditors to the Greek govt. Greek govt wanted a restructuring of private debt. But it was refused. So ECB and IMF paid the Greek private creditors and then Greece came under a tough Austerity program dictated by the IMF.
In 2011, a 50% haircut was applied to private lenders wiping out 100 bn euros of debt.
Correct - but people forget that bailouts got to those who had their money stolen - not to the thief. There was no austerity - their credit cards were cut up so its not austerity, any more than cutting up a credit card is a drop in salary.
I think you have the wrong idea of what a bailout is. A bailout is a loan, not free money, but at a lower interest rates than the interest rate of the current bonds. So when an entity (bailer) gives a bailout, it loan the bailee money to pay the creditors. For example, when US government bail out the investment banks, they gave them loans. Most of those loans have been paid back to the US government by the investment bank plus interests. So if you hear someone say that the US government made money from the GFC bailout, they are correct. The only way that a bailout becomes free money is when the bailee failed to pay the bailor back the loan but that's unlikely to happen because most bailout loans don't have a maturity date.
As for the restructuring part, Greece didn't have much leverage in negotiating because the debts were in Euros and Greece can't print Euros on its own. That's basically a detriment of joining the EU and adopting the Euros. Greece benefited from lower interest rates by joining the EU and adopting the Euros but it didn't spend the money it borrowed wisely.
Correct. The public debt actually increased after the bailouts. EU was mostly concerned to save EU's private investors, most notably Deutsche bank.
@@merid300 Correct, that was the PSI. Βut it matters who were really affected. Well, it was mostly the Greek social security funds and other Greek SMEs.
Can you do one on Spain and Portugal ,Italy there were on a similar situation
Greece dramatically improved its situation right now. Multiple foreign investments are coming into the Country and the public system became much more efficient than what it was 10 years ago. Now you can do whatever you need from the Government online in few clicks, a total u-turn compared to how many offices you had to visit with so many papers on your hands to get the same application done. Greece seems that learned from its mistakes and seeing more infrastructures, services, welfare and job opportunities out there, I can definitely say the sun will bright again!
Good to read that Greece is slowly but surely improving!!
Yes, the Greece 2.0 program, yet debt is at an all time high and GDP is less than 2009 levels, so...
@Maria not at all biased, thanks for the propaganda
The Mitsotakios success story is propaganda. You forgot to mention 1.1 million unemployed, 40 bn raise of public debt, 20 million deficit of trade balance. Economy is in dire straits.
Greece was bright 500 BC TO 300 BC 😅😅😅
It seems like excessive dept and borrowing might be a bad thing.
Debt
Greece had a corrupt government with popular policies designed for reelection. One of these was the unrealistic retirement policy with people retiring much earlier than other nations and with a promised and irrational pension payout, I believe was 75% of annual wage. This had to come from consolidated revenue coffers. Eventually, this would run down and govt borrowings had to be made in order to quell the riots that would have eventuated.
Not exactly more like boroughing a bunch of money and then spending it all on welfare instead of ways to boost the economy is a bad thing
Yea, it seems the criteria were there for a reason..
Many years ago, it was called being shackled in chains
The Japanese bonds are denominated in local currency and held mostly by its own citizens. Japanese yen, as an international reserve currency and has a reputation of retaining values (deflation or very low inflation), enjoys the international market investment. Japanese central bank, which actively controls the yield, supports bonds prices and keeps the interest low.
Japan's central government holds a large chunk of foreign bonds as reserve. It gets better yield from overseas bonds and can easily pay their own interest rates.
Also fun fact: before the euro, existed the so called , ie Greek debt denominated in Japanese Yen
Important mention! Jap CB owns over 50% of govt bonds
Somebody said that at last.
Japan has 252% public debt and the 95% of it is on it's own currency so has AAA. If Greece didn't join eurozone wouldn't have 1 million population reduce 1.1 million unemployed and all the devastation happens.
Great content! Very pleasant narration, like a bedtime story... Just with economics 😅
No
@@Jamie_Crosby You wanna elaborate a little there buddy?
The quality of the editing is miles ahead of what you used to do before.
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Focus on two key objectives. First, stay protected by learning when to sell stocks to cut losses and capture profits. Second, prepare to profit when the market turns around. I recommend you seek the guidance of a financial advisor.
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@@AshtonGrace Please can you leave the info of your investment advisor here?
@@MariusNatt My Financial Advisor is Maria Teresa Tyler I found her on a CNBC interview where she was featured and reached out to her afterwards. She has since provide entry and exit points on the securities I focus on. You can look her up online if you care supervision. I basically follow her market moves and haven’t regretted doing so.
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There’s a huge forgotten factor for the debt crisis.
I’m extremely disappointed with this video.
The debt crisis also hit other European countries and it stoped when Mario Draghi said the ECB would do whatever it takes to stop it.
There where a huge number of players in the market taking advantage of the situation.
It could be called market manipulation at a major scale by large banks and other institutions. And many Europe bank were doing it.
Greece and others can be blamed for being vulnerable. But shameless opportunists took advantage of a lack of readiness from the ECB and the EU.
Today that wouldn’t be possible.
Nobody want to write this major part of the story. It doesn’t fit political biased opinions and it would expose many huge “respected” players in the markets
Thank you for the perfect comment!! Its exactly what videos like this fail to mention.
The ECB was quick to implement quantitative easing some months after the left wing gonvernment anounced they would threaten Euro with the Grexit in order to counteract any potential risks but couldn't do it some years ago? No, the simple reason is the German and French banks needed the money to cover their golden boy's losses.Greeks are corrupt to the bone they have no notion of patriotism, it's all about the money.
The documentary Laboratory Greece (2019) is absolutely the best argumentation on this topic
Hi,
80 bn and 110 bn were committed for the first bailout but only 73 bn flowed to Greece. The source is the book "The Euro Experiment" by Paul Wallace, a European Economics Editor at The Economist.
so where did the rest go den 😂
@@prplt Bankster's pockets, there're so many lamborghinis around.
Hi, thank you for the video. Quick question regarding the cost of the 2004 Olympics. No greek government has "bothered" to officially calculate the actual cost (due to corruption), the 9b is based on which estimation?
Always a good day when EE uploads
EEE*
@@gosteiefavoritei1 ah yes the pleasant lady voice EE
@@MasayaShida this is not EE, that's a different channel
@@MasayaShida I agree, she has a beautiful/pleasant voice
Excellent video
Although the video does sum up some of the causes, it does not mention the severe mistakes made by the European Comission and the IMF during the bailouts, worsening and prolonging the crisis. Also the measures imposed on Greece did not actually help with the economic recovery, not in the short neither the medium term, it only saved the European banks, who were (because of regulatory oversight or corruption) holding toxic assets and needed to unload them into public hands.
Also, the financial markets made serious errors in pricing Greek debt, making it far too cheap prior to the crisis. There seemed to be an implicit assumption that the EU would bail any member out one-to-one on any debt, so Greek debt was priced almost the same as other EU members.
Of course - because you bail out the people who had their money stolen, not the country doing the stealing. And you hand the bill to the thief, not the victim.
The Greek were notorious for not paying taxes, I rather not have my taxes pay for them not paying theirs
Great video! It’s written really well and the narrator is quite pleasant.
Great video. Love the narrators voice, sounds like a professional. This is perhaps the best video I’ve seen on the Greek debt problem that was under 20 min. Really hit all the most important parts.
Wish you did a similar podcast on Irelands Bail out.
The issue was also that people got used to a lavish lifestyle for decades, so when the crisis hit people were devastated. In agriculture, which was one of Greece’s bigger industries, people would get EU subsidies from the government to plant certain crops and then because of a lower price to sell, they would choose to burn the crops to get more subsidies for the damages done. As someone who lived there even before the crisis, you would see people with their tractors one day and the next with a brand new Mercedes. I wonder how long they thought this would keep up.
It’s because Greeks got babied by Europe, and they got extremely spoiled 😂
They thought EU is a milking cow.
not even close
@@madflaka4087
Pretty much.
i saw a lot of people in greece doing similar things. my aunts brother used a "new business" program to get a €30,000 grant for his new "business". went and bought a mercedes with it and just lied on the 3 years required reporting for the program, said the business failed and got to keep the money
A few inaccuracies with dates and some minor facts like Papademos - ex PM of caretaker government and ex EU central bank vice-governor, being presented as the PM which brought up the cooking of statistics, when it was Papandreou. Last bail out was agreed with a left party, SYRIZA in 2015 after a 6 month strain of relations with the EU and the last funds were provided in 2018.
Why do people loan money so light heartedly. I wouldn't loan unless absolutely certain I'm going to get the money back.
Because the got a bonus for every loan
It wasn't just the Greek government lied, the EU did and major financial organisations cooked the books.
Given this hasn't been reported by any credible sources (no, crackpot conspiracy websites are not credible)...
Sounds like someone has a guilty conscience and is projecting.
Of course to state that the government lied is a childish statement. There are multiple institutions involved in reality
You spoil their narrative.
Spending money on candies until their pockets are empty.
The narrators voice gave me ptsd to those educational videos you would get shown in middle school, amazing though lol
Yo Maren.!?
Kinda weird hearing a microbiologist explaining economics stuff but, nice seeing you here..
ahahaha, can't believe you recognized me! but I'm very glad you liked it :)
As a Greek i can say that there were a lot of scholars trying to find out why greece defaults every 50 years. Some said that its was defence spending, other pension loopholes and low year limit to access for some parts of the population , eu not being a federation but a surplus center selling stuff to a deficit periphery etc.
Since i live in Greece and know whats happening i can say that it was a multilateral problem. A weak state that cant or doesn't want to make things right, a society that only lived for today and never thought of tomorrow etc. I would prefer not to pay 6 billion euro for defence spending every year in order to reinvest it to the economy or to not issue debt to sustain it, but we cant really do it like other countries that are neibouring Luxembourg and Belgium. Greece at the end always payed her debts and still is . Im not so sure of what can we do in order to not become only a tourist destination for summer holidays, because if thst doesnt change then there will be another crisis around the corner.
Start growing food. Crete has already started🌞
@@permacultisdruid3867 dude greece is full of mountains..its not easy to grow food in such environment
Greece can’t do anything as long as Germany is in the Eurozone or Greece stays in the eurozone with Germany. As Germany strictly follows the rule of wage dumping, which systematically undercuts every Euro-member, so even if you follow every rule you will end up with a trade massive deficit against Germany. This Problem with Germany also has the US, France and Italy and it gets bigger and bigger every year.
Wait 5-6 years when the retired elders will be at a new high and working people would not be a lot to support their retirement income.
You dont need scholar. You need the economics known by every ordinary grandma: that you cant consistently spend more than what you earn.
Sad to still see my fellow greek people not accepting reality and avoid responsibility. Complain about the defense budget of 6B and not the pension spending of 17% of GDP every year (must be No1 in the world in percentage of pensions to GDP !!!!!). A nation of 55years old pensioners and thousands of useless (unproductive) public organizations who live on the backs of a struggling private sector and our kids future (taking debt now to fund social benefits and leave our kids pay them). I used to be one of those unproductive public employee myself.
High debt isn't a problem until... your competitiveness drops and interest rates on your debts rise, and then it's a huge problem. Stuff seems manageable until the floor shifts slightly and you can't balance it anymore. It's a regular concern in the US, though we have a lot more tools than Greece had to respond. So it's not _necessarily_ going to be a crisis, but it could definitely be a problem someday. All through the video when it talked about Japan's situation, I worried about what happens if Japan enters a slump. That's a lot of debt to suddenly have collapse down on you.
Also: Hoping Greece is genuinely on the upward slope now and doing a lot better.
if I'm not mistaken, Japan had another thing going for them: they (Japanese institutions and investors) owns most of the Japanese government's bonds. and they issued them in their own currency (JPY)
Wild how as a planet we use an economic system that actually makes s*** harder on you when you need help. Greece would probably be in a strong position right now if it got those loans at 1%. Instead all of it's extra economic out put it's dedicated to high interest payments. No way we could use a 1% interest rate but demand payments to the principal like they got a 30% interest rate.
Can't risk the extra wealth of nations that don't need it. Gotta make sure their risk is covered at the expense of a nation full of people that need help
There are many African nations which are just as corrupt as Greece.
Go, give them all your money at 1% interest rate and see what will happen.
If greece could lend at 1% they still would be piss poor
There's not much Made in Greece items available in USA where Japanese companies are widespread
Amazing job!
The video is quite good but has one large inaccuracy. Greek debt was not a public debt at the pro-crisis period. It was a private debt of the Greek banks, not of Greece itself. During bailouts, the banks were completely bailed out and their debts were tranferred upon Greek people. Of course the credibility of Greek banks affected Greece's deficit and credibility but not that the crisis was created by Greece's public sector.Greece was forced to bail out its banking system and in eafrly 2010s German and French banks had a large exposure to the Greek debt due to the fact that they had lent money to the Greek banks. The Greek debt has nothing to do with poor working or mismanagement of Greek public sector, that was mainly propaganda tool to force Greece into bailouts with harsh terms that were imposed on people to save Greece's banking system and its private-banks creditors. It was a tool to diplomatically isolate Greece during bailout negotiations, so that the Greek people accept without debate any terms that was harshly imposed to them.
Greece had an overliance on loans and printing money to fund a massive public sector which practically fed the rest of the greek economy. When euro was introduced, the governments could get cheaper loans, but couldnt print money anymore. That, plus the 2008 global financial crisis, made it clear that the country counldnt continue on the same path, the situation exploded. Ever since, Greece has been painfully restructuring its economy from the ground up, getting rid of old shit. Although Greece has alot more work to do, its new economy has proven very resilient and stable despite global problems like Covid and the energy crisis. Finally, Greece is growing steadily and paying its external debt without any issues.
Greece’s debt to gdp has been increasing and buying power decreasing, we keep getting more and more loans. 400 billion debt with a 175% debt to gdp (2022). How do you think this is going to end up? Greece’s economy is not self sustainable anymore, yet we recently got a new one. We are in creditors prison portrayed as stability and sooner or later a global crisis will come and it will decimate us.
You place Athens in the wrong spot! 😉
True ,it looks more like Delfi or mount Olympus
I'd like to have seen a breakdown on what the government was spending so much of its money on in the first place. It was mentioned that social programs & pension systems were points of spending, but how much of the budget were they (and to what extent did they add to the debt)?
Just curious, as we know many developed countries spend money on these things, but was Greece doing it in extreme excess? Seems like something politicians would do to get popular & gain some votes. If suddenly I was told I could retire 10 years earlier, only work 3 days a week & still make the same amount, I'd be THRILLED, but obviously that wouldn't be good for the long-term health of the economy. So what was Greece doing so differently that had its debt up to 120%+ of its GDP?
Historically Greece hasn’t been good at collecting taxes, this was also a point of contention when the 2008 recession hit as the tax revenue which was already below what was needed (and should have been collected), fell further.
Other expenditure that’s pretty clear is military spending, as a percentage of GDP Greece is one of the highest in NATO mostly fuelled by the ongoing tensions with fellow NATO member Turkey.
It was paying out pensions which had never been affordable. Many people had second jobs done for cash i.e. no taxes. The tax base was shrinking as people evaded taxes en masse, so no money for pensions. The country also de-industrialised due to the state and unions collaboration. No export, no income and a reducing competitiveness.
@@grahamo22 Exports plummeted after the transition from cheap drachma to the expensive euro. Unions can't do something like that in such short period of time. The other points are pretty correct and I'd also add the demographic issue.
Greeks work the most hours in Europe and have the highest tax in Europe. You'd need to be an insider of the political system in order to get an early pension or other benefits.
Keep up the good work.
Very good book on the topic. 👍
Adults in the Room: My Battle with the European and American Deep Establishment by Yanis Varoufakis
Pefect suggestion, debunkes the video as well.
No, a complete load of BS from a guy who caused more damage to the Greek economy in the three monts he was in government thsan the previous decade. YV is a fraud - a professor with zero experience who thought other people would negotiate in good faith when he planned to defraud them.
excellent video
I strongly reccomend yanis varoufakis who talks about greek crisis and all the elements involved and Richard Vague who talks about what does it mean debt gdp ratio
The last person I would listen to is a Greek minister of finance.
@@StewieG46 Greek freeloaders
@@StewieG46 but,but greek financemunister was the Designer of the 2€ stickman
You must be Greek as anyone who knows anything about the situation would say that YV is an incompetent fraud who cause more harm to Greece than the entire country. The guy came in with. no experience, and tried to bluff the EU into giving in and crawled away after a couple of months of damage.
In the Philippines the financial crisis was just only happen in its worst status back then during the time of world war 2 and world 1 in 1890's some financial crisis that happens to many part of world after world war 2 causing just a minor effect even by the time of covid 19 pandemic and followed by inflation that happens today
When using the drachme Greece was used to raising salaries and pensions 10-15% each year, which was barely enough to keep up with inflation.
Everything kept rising with the same percentage after switching to the euro, henceforth a typical government pension increased from something like €300 to €600 (which made it roughly the same level as german pensions, but Germany is a much wealthier nation). A big part of the austerity measures was slashing that back to €300. Which of course pissed of all the greeks.
One of the other understated problems with Greece: after going through several corrupt regimes, tax evasion became a cultural virtue. At the height of the crisis, the black market was something like 20-25% of GDP.
Kraut made a video that discusses this. Did you happen to watch it by any chance?
@@stefanradebach2889 I have not.
I wish I could remember the name of the article I read about a decade ago (or even the author's name). It was a Greek economist with the inside look.
@@stefanradebach2889 Just watched it. Very good.
1:53 Greek and Danish people laughing. For sure it didn't happen.
In 2007 and 2008 greek debt raised 110 bn because government published bonds as collateral for banks. Made this way public the banks debt. In 2010 debt was 300 bn.
Awesome hire mate, perfect voice !
At this stage, taking on the Olympics is a death sentence.
Voice over track needs a de-esser applied.
Heard about word "work",Greeks?
Greece adopted the Euro in 2002, not 2001
Great video but the accent of the narrator is very jarring after being accustomed to EE's lovely Australian sound.
It’s all about spending. Small consistent cuts in spending that can eventually lead to tax cuts once surpluses are generated and debt is being paid down will be the biggest long-term drivers of an economy.
Why didn’t the video mention the role of Goldman Sachs and other banks in creating this?
Exactly!! And the bailouts went to private investors
because, GS were involved and out of it a decade before the real fraud started. Sorry to bust your balloon but this particular issue was long after GS left and was 100% a greek government problem.
@@opusknowledge Of course - because you bail out the people who had their money stolen, not the country doing the stealing. And you hand the bill to the thief, not the victim.
Greece had it's exports plummeted after the transition from the cheap drachma to the expensive euro. Without vastly unpopular reforms the failure was inevitable. The great recession was the final nail to the coffin.
Wheres shreemp on the bawbee guy?
A literal modern pay parable about how lying does pay off in the end
Literally
I am disappointed. Who really got bailed out? Banks in Germany and France got most of this money, not Greeks. They in turn owed US banks. But Greeks are supposed to cut "wasteful government spending"? People were foraging from dumpsters and professional and young people had to abandon their own country. And the country actually needs to invest in infrastructure and in education to be "competitive".
I can't speak to who exactly got the bailout money, but it seem you haven't quite understood that the overriding reason for "the bailout" was to avoid the worst of all outcomes: a default on debt obligations.
Greece was in a situation where it couldn't pay back its debt. This is ultimately why it needed a bailout (if was in a position to maintain debt repayments, it wouldn't have needed the bailout in the first place). Debt is owed to creditors. Therefore, a bailout will not only benefit Greece (by helping it avoid default), but any creditors to whom money was owed (who will now continue to receive debt repayments). This shouldn't be surprising to anyone who has thought this through.
It sounds like you're suggesting that Greece should have just taken the money to continue doing what it was before.
This seems akin to saying a patient with a treatable cancer should simply take funds donated to fund treatment of said cancer, and go on a vacation instead, because if the patient goes to get treated... its really the doctors who are benefiting, by getting paid.
@@telanos2492 So you did not explain why banks in other countries got money instead of Greece. Greece should have some say on how the loan is distributed. And, no, loans are about risk. Both the lender and borrower have to swallow something. That is one of the reasons why there is an interest rate, to reflect that not all loans will or can be repaid.
@@telanos2492 Let me tell you how it worked, a german company told to greek ministers i will give you 10 million if you buy out of my company, a german bank gave a loan to greece for 1 billion, the bankers kept a few million to forget that greece can not pay them back and the money went directly back to the german company. The greek companys closed or were bought by the germans because they were not competitive. And then in 2010 the banks said no more loans, greece was out of money so the europeans paid 100% of the greek loan and fucked greece with stupid policies for ever. They do not even want the money back, they have greece as their slave. If a bank gives a loan for 10 million, i spend it and i am left with 100k i am going to give the 100k and the bank is gonna suck the rest of the loan, it is their risk.
Of course - because you bail out the people who had their money stolen, not the country doing the stealing. And you hand the bill to the thief, not the victim.
@@ericbruun9020 Of course - because you bail out the people who had their money stolen, not the country doing the stealing. And you hand the bill to the thief, not the victim.
The reasons are far simpler - 1. Endemic Tax evasion (described as the Greek National sport) 2. Corruption in the Greek government, completely falsifying its accounts and taking loans which it had no plans to repay 3. An economic model for the State which encouraged early retirement on pensions which were utterly unsustainable 4. a belief that one could 'vote away Austerity' as Syriza found out when the cashpoints closed, just after the announced they would not be repaying debts but also that they wanted more loans.
One should point out how big a failure were the programs of the EU to “support” Greece. The European solidarity was only to protect German banks that were over exposed to Greek debt and not helping the country.
And you get the Oscar for racism against Greeks.
@@antimimoniakos Stop calling people "racists" for talking facts.
@@hamlet557 Racism huge, enormous, vast, accountable. You have no clue why Greece bankrupt. In fact didn't. Until 2008 public debt was from 60 to 80% of GDP depending on the source. In 2008 ECB count as public debt the collateral bonds government published for banks. Only for Greece ECB did it. Then started the racist propaganda for corrupt and lazy Greeks who lived beyond their means spending EU money. Knife people believed it. Even Greeks. If you want to get known about Greece start searching on internet.
Aren’t the Olympics always horrible for the host country?
I think a few nations actually were mostly fine. I think some games in the USA were fine as the city had lots of stadiums and stuff already and also Montreal games in Canada.
At least I think it was those two. Sorry if I'm wrong.
@@baronvonjo1929
It was actually horrible for Montreal. And it wasn't until 2006 that it paid off the debt.
@@shauncameron8390 Oh 💀
Also Japans populations is 12.5 folds times greater than Japan and Greece had been blocked 🚫 from access to public markets# debt to GDP comparison
Debt grows.
If you guys are curious as to why the European institutions are so eager to lend more money for an unsustainable loan to Greece just look up the natural gas reserves in the Mediterranean they're around 3 trillion.
7:11 No, Japan does barely have foreign ownerships of its bonds, why would anyone hold Japanese bonds at much lower interest rates than US treasuries. Whereas Greece almost all bonds were foreign owned.
Looking at greece, it looks like the eu has a perpetual deadbeat zombi country on its books. The budget surplus barely seems credible, excluding administrative and other costs. The debt is now 50% higher than before the crisis. Some places need to be left to themselves maybe. The eu probably know they will have to write off the whole 350B euros if they let them default, and now in theory they are not lending any more money. Just a question of time, they'll manage to never pay back a cent, while probably increasing 'private' foreign debt all the while.
The eu maybe should kick them out of the union at an opportune non crisis time and seize whatever assets it can.
so many individuals say Europe ruined Greece but one side can't take all the responsibility.
It started alot earlier than 2004. too much public servants.
This is why you need a balanced budget act in your country.
I assume you're calling for an act that mandates countries only spend what they receive in revenue.
If so, you might want to take Econ 101 and develop a rudimentary understanding of how economies work.
@Telanos there are countries who already do that. Germany is the only example I can remember. Many US states have it too as well as Canadian cities.
The root of Greece's economic woes is incompetence and corruption.
Tax dodging is pretty much the national sport.
Good video, but would of been good to explain how IMF essentially forced Greece into taking the bailouts and how the people suffered, because IMF and Eurozone policies
Which is just a fitting consequence for how Greece mismanaged its own economy.
Nobody forced Greece to take the bailouts, Nobody else would lend them money - literally nobody so they had achocie to make - default or take the loans and the choice was 100% down to the Greeks.
The Olympics did this??? That’s ironic.
Guess what? Rio de Janeiro, 2016 Summer Olympics' host, is also a bankrupt state.
Take into consideration that taxes were often just not paid/collected. There was a small island on which most of the population successfully claimed to be blind to get into social welfare and it actually worked until the state finances collapsed.
That was indeed another major factor. It wasn’t just the rich but people of all incomes were finding ways to not pay taxes.
@@Homer-OJ-Simpson
I remember a documentary where a large shipowner, one of the richest men in Greece, tried to portrait himself as a normal guy. And asked if shipowners (who enjoy tax exemptions) should pay more, he just answered that he does not view himself so much as a shipowner but as a taxidriver of the oceans 😂😂😂
Debt is Greek legacy to mankind.
At 6:51 seconds you said 67th . The table said 66th.
This is interesting. Would be worth doing a full blown explainer on what exact steps Greece took to get here.
To get into the Eurozone, with Germany, Netherlands and Austria. The first few years were okay as the trade deficits weren’t as big, although already in 1999 several left politicians in Germany warned that countries like Greece and Portugal will fail due to Germanys wage dumping as Germany will undercut the Eurozone.
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The Economist Heiner Flassbeck also warned the ECB and the EU Commission that Germanys wage dumping will drive the whole Eurozone against the wall. Which is why he created a European Forum to moderate wages in all of the Eurozone with the EU Commission and the ECB and the the member states Labour Ministers. They still meet but have never talked about wages
why does the word 'anxiety' flash up for a split second at 5:59?
Kratos did by beating all the gods of Olympus and opening Pandora’s box.
So untrue generally speaking lowering government spending doesn’t retract an economy. It would take a poor and singular economy to be that reliant on government performance. Government’s are suppose to break even so expecting them to contribute to the overall performance of your economy is stupid frankly because they’re not suppose to produce or make profit lol
Generally speaking: when you are talking about countrys' decisions, do NOT use just the name of the country. For example: "Greece". Say: Greek Government. These are the responsibles. Not the whole country!
We, as citizens had not the same amount of responsibility, which the government had. Same with all the countries in the world. And using just the name of the country, for what the politicians do wrong, is an INSULT against the whole nation!
Dont spend what you dont have is a good idea...
Who is the voice? Not the person who wrote the script. And that feels soooo off from the main channel. Feels very anonymous and wrong
I think you are a bit off base to point to printing money as a solution... It just delays one problem for another.
Olympic games are best for Olympic committee, but worst for countries hoisting them
Where is my friendly Australian man?
It's funny that so much money given to Greece to save it self, but many African and south Asian countries could be saved with a lot less.
Based on the current French protest, Europe hasn't learned anything about spending beyond their means.
good information, isn't a "mini crisis" just a "problem" ?
Greece paying their debts faster than other countries and has the highest growth. All this stuff here is a thing of the past 😂❤🇬🇷
Fed
Greek men should build electric cars for Lincoln Townhome and some electric cars for Tesla. I think Elon Musk is a Grey clone of Dr Tin tun alias Dr Harar Tolia if Lan vampire is Lily Tun and Dr tin tun is part Kashmiri. Dr tin tun Kashmiri family name is Tolia. I am Juliet Tun. Greek men should build hybrid cars
Greece in the 1800s was an Ottoman territory. Western Europe coaxed greeks with money to revolt against the Ottoman overlords. After gaining their independence, Western European Royalties assigned their own kins to rule Greece as King to ensure payment of debt. Greeks were paying exhorbitant interest for ~150 years.
First of all Athens it's not where the video highilited. The prime minister shown was not elected but, appointed from the parliament for a few months, he revealed nothing, he is a banker - his responsibility was to apply the memorandum. The credibility of this video is at least dubious.
With the person analogy, what would happen the Individual who lies on their mortgage applications and commits fraud?
Things continue to be bad many young people continue to flee the country plus skilled workers and highly educated people. The main reason greece will never recover is because of bureaucracy and corruption Greece is ruled by a handful of oligarchs who control all media and the economy plus to make things worse from 1950 three family names keep on getting re elected till today Mitsotakis, Papandreau and Karamalis their Grandfathers, fathers, and now sons all have become PM. Good luck on recovering whenever
A country from where many things came- Democracy, mathematics, philosophy, law and many more great things. What happened to it in today's world?
Everything comes to the end
Is that Maren Hunsberger narrating?
oh hey! Can't believe ya recognized me! Yep, this is a new part-time voiceover gig for me :) where do you know my from??
@@MarenHunsberger your stuff on Seeker. And I can't believe, one, I guessed right and two, you found my comment! You're fantastic, keep up the great work.
Oh, and I just noticed you have your own channel too, well you've got a new subscriber!
US debt to GDP is 127%…
This video missed one major reason why Greece failed and still haven’t recovered to this day. The Problem of Greece and all of south Europe to this day is that Germany, Austria and the Netherlands are producing cheaper than South Europe through the means of wage Dumping. Meaning these countries have technically devalued their currency inside the Currency Union. So even if South Europe followed every other rule, they still would have gone bankrupt as they can’t compete against north Europes devaluation through their high productivity in combination with wage dumping.
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Also 7:50 Greece was the Country that increased its productivity the strongest from 2001 to 2010, so you can’t necessarily say they wasted money, at least not more than before the Euro. They even could have kept that wasteful spending and corruption if north Europe would have followed the Euro-Inflation target of 1.9%, which they are still undercutting to this day, which is why again the Euro crisis isint resolved yet.
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Only the ECB is letting the game still running but comes at a huge cost for South Europe especially for Italy and France as they deindustrialize, by loosing markets to north Europe. The ECB already even asked Germany to finally increase its wages and stop it wage dumping.
Lazy southern european propaganda.
@@tischtich3599 in Germany we call People like you Leugner. Also little fun fact, the German Chancellor Schröder and the French President insisted to get Greece into the Euro and even stopped the EU Commission from further investigation of Greece numbers. Economically the debt rules of the Maastricht Contract don’t really have any substance either way so no one really cared.
Just read adults in the room. It opend my eys
Nope - its packed with lies and distortions from a complete failure who did more damage to the Greek economy than the 11 million Greeks did over a decade or more. The guys a fraud. He literally had no experience and thinks he knows better.
@@grahamo22 sorry i dont agree
Greece should have left the Euro at the start and this wouldn't have been nearly as painful or long. Many countries have been to Greece's shoes before but none suffered as much due to the Euro handicap. It probably still should leave the Euro and benefit even to this day.
Greece cannot leave euro at this point, because the euro zone would collapse, due to how much inflation this move would bring out of Greece into the rest of member states. Hence Greece has this "cunning" yearly tactic, that of they don't get the funds from EU, they will leave. Thus far, nobody said no to them :p
the Troika threatening Greeks that if they leave Eurozone, they would shut their banks and all of their savings will vanish. It works for Cyprus and even though the referendum in 2015 says no, Syriza simply been too fearful of facing such outcomes.
If Greece had left the Eurozone during the crisis, what would have changed? They could print their own currency I guess and drive inflation through the roof, or they could accept IMF bailouts. Don't forget they'd also have insane capital flight as nothing signals desperation and collapse to investors like switching to a new currency to outrun debts. All I could see good coming from it is depreciated value of the Drachma making Greece a cheap as hell tourist destination, which wouldn't be helpful at all during a global crisis as tourism is always the first industry to die.
@@Steadyaim101 Yeah but Greece only "recovered" in 2018, global crisis ended in early 2010s. Having your own currency boosts exports and reduces reliance on imports, and also improves consumer prices to better reflect the wages. Greece could have diversified to be less reliant on tourism as well. The Euro is great for tourism because tourists don't have to worry about the hassle of converting prices, but it's really terrible for any other kind of export activity, and as the video noted it's also really bad for adapting to any outside shock that affects countries assymetrically. As for the investors and capital flight those things happened anyway because they are political and not so much to do with the currency, if anything cheap currencies are better for attracting foreign investors especially in productive activities like manufacturing. Strong currency is only good for borrowing money which Greece absolutely shouldn't do, and for being a finance hub which Greece isn't and won't be in the forseeable future. What Greece needs to do is ditch the Euro and basically copy what eastern european countries are doing.
@@UNr34 I mean argentina is basicly greece without the euro and they are not really in a better position then greece, especialy with their sky high inflation.
Also a lot of international investors would properly nominate their dept to greece in USD, to avoid the devaluation of their assents, which together with the high inflation would bring the greak state in a precarious fiscal position.
This whole mess would properly also compleatly wracked greeces political and economic stability, strongly discouraging foreign investment (like with argentina).
I bet these crises help to privatize national properties :)
Good thing it's impossible for this to happen in the United States