Greece continues on its self destructive path. The fact is that if Greece wants to avoid default it will have to get money from the Troika, and the Troika does not want to lend any more money to Greece unless it takes the painful medicine to reform its economy and control its spending. These reforms are a bitch and I can sympathize with the pain that people are suffering, but what other solution is there? The fact is that Greece has made itself insolvent and economically uncompetitive, and the Troika is not prepared to endlessly bankroll them. The only solution is to cut spending and make the economy more competitive, or default. Going on a rioting spree is just destroying one of the pillars of their economy. Who wants to visit Greece now, with all the nastiness going on there? As much as I can sympathize with their woes, the fact is that the Greeks got themselves into this mess, and now don´t want to make the sacrifices that they have to do to get themselves out of it. Instead they go on a rampage further damaging their own economy. The whole Greek system is dysfunctional and a tragedy, which they invented and can´t seem to get away from. This from Mish Shedlock.
Coverage of the chaos in Greece is now everywhere I look. Here is a sampling of stories:
As more than 40 buildings went up in flames, including two historic cinemas and several banks, Athens city centre was left resembling a war zone with cafes and shops smashed and looted as MPs backed the austerity measures by 199 votes to 74 in the single most important ballot in modern Greek history.
The chaos dominated one of the stormiest debates seen in the Greek parliament as MPs argued over a raft of strict measures demanded in return for international aid. Clashes were also reported in Thessaloniki, Patras, Corfu and Crete.
The violence erupted as tens of thousands of demonstrators – many clearly from the austerity-hit middle class in designer spectacles and trendy attire – converged on Syntagma square in front of the parliament to denounce the wage, pension and job cuts envisaged in the €130bn loan agreement. Banners proclaiming “Popular uprising!”, “It’s us or them!” and “Don’t gamble away all we have achieved” were prevalent.