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A Greek Tragedy-

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A Greek Tragedy- Powered By Docstoc
					The title seems to sum up the unenviable scenario that Greece has got itself into
succinctly. In a typical Greek tragedy the characters are themselves responsible and
have none other to blame but themselves for the trouble they land into, so much like
what Greece has done to itself. The question being debated is whether the EU should
don the role of the knight in white armour and rescue Greece the damsel in distress,
not withstanding the fact that it was the damsel who chose to put her self into the
trouble that she is into. This article is not an in depth analysis of the factors that led to
the collapse of the economy in Greece or whether it should be the right thing for the
EU to bail it out of the current crisis. We are simply highlighting the basic facts, so
our readers can draw their own conclusions
  In a basic sense most nations that find themselves in dire financial straits have none
to blame but themselves for their predicament. In most cases it is on account of
pompous and unfettered spending, reckless borrowing and failure to notice the cracks
when they first appear and not heeding to sane advice. These nations do not take any
kind of austerity measures or tighten the belt when there is still a chance to recover
and slide down rapidly to the abyss of no return. This is the case with other countries
in the brink of bankruptcy like Poland, Ireland and Dubai one of the wealthiest
nations just some years ago. What is amusing in the whole episode is Greece accusing
the EU of going slow and not reacting fast enough and with the required funds,
making it sound as though being bailed out is its birthright. The EU and the IMF need
to mobilise trillions of dollars to affect one of the largest economic bail out in history,
a sum which Greece should realize cannot be laid at its door overnight.
  A financial bail out makes things too easy for the country in question so it never
learns its lessons from the fall, it also taxes the economy of the benefactor nations so
badly that its citizens start wondering whether they are being penalized for being
prosperous - a result of their hard work and better money management. A bail out
would also send the wrong signals to nations in the brink of a fall that there is always
big brother (EU) to bail them out in case of a collapse. The scenario is similar to the
millions of dollars that the World Bank writes off as bad debts when borrowing
countries fail to repay much to the chagrin of equally poor nations that tighten their
belts and attempt to repay the Bank, which amounts to penalizing the countries that
are prompt in their repayment while rewarding the defaulters with a loan write off.
  Questions that are being debated are, whether the bail out would be successful? Who
would monitor if the bail out funds are properly channelized. Opinion is also divided
among economists whether a bail out is necessary or it would be better to let the
country go bankrupt, devalue its currency and let it limp back to normalcy. Supporters
of the bail out however argue that the bail out of Greece is in a sense a bail out of the
EU itself and if the bad situation is allowed to continue in Greece it will spread like a
festering wound to the rest of Europe.

				
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