The Greek prime minister Lucas Papademos has announced that Greece might require a third bailout. [1, 2]
The IMF has already discussed plans for the third Greek financial rescue [3] after concluding that the second bailout would not be adequate.
The financial world's framework of reality continues to accelerate away from the framework of reality used by masses of normal people, who manage their financial affairs with prudence. The majority of people on earth believe that once bankrupt, they would not be given a second bailout, especially had they committed fraud to falsify their financial statements.
When frameworks of reality diverge strongly, or when collective belief systems conflict deeply, calamity can result. The reconciliation of conflicting belief systems usually comes with sudden and unexpected consequences.
The assurance of a perpetual bailout for Greece has relieved Greece of some impetus for financial prudence, as noted some time ago in this blog: see "Greece likely to receive permanent bailout, relieved of all obligations for financial prudence".
I acknowledge the following sources:
[1] "Greek PM says third bailout may be needed", The Guardian, March 30, 2012.
[2] "Papademos: can't rule out third Greek bailout", Wall Street Journal Market Watch, March 30, 2012.
[3] "IMF to discuss third bailout this week: ex-official", CNBC, 12 March, 2012.
The IMF has already discussed plans for the third Greek financial rescue [3] after concluding that the second bailout would not be adequate.
The financial world's framework of reality continues to accelerate away from the framework of reality used by masses of normal people, who manage their financial affairs with prudence. The majority of people on earth believe that once bankrupt, they would not be given a second bailout, especially had they committed fraud to falsify their financial statements.
When frameworks of reality diverge strongly, or when collective belief systems conflict deeply, calamity can result. The reconciliation of conflicting belief systems usually comes with sudden and unexpected consequences.
The assurance of a perpetual bailout for Greece has relieved Greece of some impetus for financial prudence, as noted some time ago in this blog: see "Greece likely to receive permanent bailout, relieved of all obligations for financial prudence".
I acknowledge the following sources:
[1] "Greek PM says third bailout may be needed", The Guardian, March 30, 2012.
[2] "Papademos: can't rule out third Greek bailout", Wall Street Journal Market Watch, March 30, 2012.
[3] "IMF to discuss third bailout this week: ex-official", CNBC, 12 March, 2012.
No comments:
Post a Comment