Wednesday, February 24, 2010

Coming to a Theatre Near You

From Bloomberg;
Greek Police, Protesters Clash in Nationwide Strike (Update2) 
"Half a million civil servants, who held a one-day strike on Feb. 10, today joined forces with GSEE, which represents 2 million workers, after EU warnings that Papandreou’s government needs to bring in new taxes and make more spending cuts if it fails to rein in the largest budget gap of all 27 EU member states.
Air-traffic controllers, customs and tax officials, train drivers, doctors at state-run hospitals and school teachers walked off the job to protest government spending cuts that will freeze salaries and hiring and cut bonuses. Journalists also joined the strike, creating a media blackout....
Greek bonds have slumped, driving up borrowing costs, as investors fear that government plans outlined so far will fail to reduce the gap this year to 8.7 percent of GDP from 12.7 percent. Papandreou’s government needs to sell 53 billion euros ($72 billion) of debt this year, the equivalent of 20 percent of gross domestic product....
“We haven’t yet seen anything of the fiscal contraction that Greece has to go through if it wants to avoid a sovereign default,” Fredrik Erixon, director of the Brussels-based European Centre for International Political Economy, said in a phone interview. “The main problem is that the Greek government and the prime minister himself have not yet realized the depth of the mess.”
Almost 500 international and domestic flights have been canceled today, a spokeswoman for Athens International Airport, Greece’s biggest, said by telephone. The Athens metro, which carries 650,000 commuters to work each morning, isn’t running nor are the capital’s trams. Passenger ferries and other vessels will remain docked until the end of the strike....

So imagine you are living in Greece and you have a little (or a lot) of money...reportedly it's fleeing at a dramatic rate,
Greeks Scramble To Pull Out €8 Billion From Local Banks As Greece Responds With Money Control Measures What would you do?
Now if you are living any of the other problematic countries...Italy, Portugal, Spain,  Ireland, Belgium, Austria, ...well anywhere in Europe, the Greek news has to be front and center.
What would you do?

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