EU Aid Package Will Destroy Greece: Opinion
The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (TheStreet ) -- Greece is insolvent. No amount of new loans from rich EU governments and the IMF can save Athens from default on sovereign debt, and that poses a clear threat to the global financial stability. Moreover, the solutions being imposed will reduce Greeks into poverty to sustain German prosperity. Welcome to the New Imperialism!
Greece's national debt exceeds 175% of GDP, and investors view its debt so risky that its bonds are deeply discounted in the resale market, pushing up yields to 20% and more. At those rates, Greece simply can't refinance existing bonds as those come due.
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