the greek state is going bankrupt
Jim Grant is not always right, especially when he relies on public figures<g>
Greece has high public debt, but, it's lower than, say, Italy, or Japan. However, like Japan, Greece has huge savings, which, unlike Japan's, are not much publicized. If the government sells its stakes in companies from telecommunications, to utilities, to banks, to mining (Greece is has a legacy of socialism), its public debt will easily go down to zero, if not negative -- remember "bankrupt" Russia?. Even though it's a tiny country (10 million, less than the average Chinese city<g>), it has the largest merchant fleet in the world, generating fabulous profits due to globalization, and one of the longest coastlines in the world, rapidly filling with second homes of well off European retirees -- think Florida of Europe. Its companies have been rapidly expanding into the Balkans, a poor region which is joining the EU and growing rapidly.
One measure of Greece's not much publicized wealth is its homeownership rate. By the way, most Greeks (as in 70+%) carry no mortgage on their houses. Check it out:
photius.com
PS My wife and i visit Greece annually, and have a couple of homes there -- mortgage free <g>. I think i know what i am talking about, but i could be wrong. Let's watch and see who goes bankrupt and who doesn't <g> |
