Understanding the Financial Crisis in Greece

Good morning Hank, it’s Tuesday. I’m just back from a crazy and beautiful and
exhausting trip to Brazil in support of Cidades de Papel, and I will talk more about that
later, but for now, I want to talk about Greece. So Hank, as you know, I was the third best
economist among all C students at the Alabama state academic decathlon in 1994, but even
a professional like myself does not know how the economic crisis in Greece should or will
end. So I’m not gonna try to offer solutions today;
I’m just gonna try to understand the problem and how we came to a place so desperate that
the news media has created the horrific compound word “Grexit.” So Greece is a country in southern Europe:
you know, the Acropolis, Socrates, Hipacea, the movie “300,” et cetera, and until 2001,
its currency was the drachma, which probably meant “handful,” because three thousand years
ago, a “drachma” was a handful of six metal sticks that were used as currency. Flash forward
a bit to 1832: Greece becomes an independent nation and brings back the drachma. But then,
in 2001, Greece joined the Eurozone, along with all of these countries, and began using
the Euro as its currency. The euro has been great, insofar as it facilitates
trade, but nineteen countries sharing a currency has its problems. Like one of the reasons
this crisis has been so confounding is that Greece’s monetary policy – how much money
they can print – is controlled by the European Central Bank, but Greece’s fiscal policy – how
much money they can spend and where they spend it – is mostly controlled by the Greek government. Now, Greece and other Eurozone countries are
supposed to follow some basic fiscal rules like no more than three percent annual budget
deficits, for instance, but many Eurozone countries, including Greece, have broken those
rules. Speaking of which, since the mid 1990s, the
Greek government had been reporting deficits and debts that were much lower than the actual
deficits and debts. And then every time a new government got elected, they would be
like “wow, the previous government was not telling the whole truth about deficits”, and
then that new government would proceed to not tell the whole truth about deficits. And then in 2009, a newly elected government
announced that the budget deficit that year would be 13.9% of total economic output
and that the numbers had been fudged for some previous years. How did it get so bad? Well, that depends
on who you ask. Some people point out that Greece’s labor costs got much higher after
joining the Eurozone. They probably had too much debt to start, there was a huge problem
with tax evasion in Greece, and when the 2008 US recession became global, Greece was disproportionately
affected because two of its biggest industries are shipping and tourism, neither of which
fare particularly well in recessions. Now, I wanna emphasize that it’s not always bad
for a government to run a deficit, if that deficit can be invested in ways that grow
the economy and increase the tax base, it will increase government revenue, it’s a virtuous
cycle. For instance, the United States has a strong
economy, and we’ve been running a deficit quite consistently for fifty years. But Greece’s situation is different. They’ve
been able to borrow money at low interest rates ever since joining the euro, because
people figured they were a safe bet, right? The euro is safe. But with these revelations
in 2009 that Greece’s deficits were so high, investors started to get nervous, and they
started to ask for higher and higher interest rates in exchange for loans. Greece needed
that money so it had to accept the higher interest rates, which made its deficit problem
worse, which made the interest rates go up–that’s a vicious cycle. Okay Hank, so by the spring of 2010, the problem
had become so bad that a younger and more promising version of myself discussed it in
a Vlogbrothers video. Also it was so bad that the European Commission and the International
Monetary Fund came to Greece’s aid with a 110 billion euro bailout. The European Central
Bank also helped out by buying some Greek debt, and giving Greek banks access to capital,
and these three institutions came to be known as “the troika”. Now this all may seem very generous of Europe
and the IMF, but one, it was a loan, not a gift, and two, back then the Eurozone was
feeling contagion jitters. Interest rates were also starting to creep up in Portugal
and Ireland and Spain. And there was a real fear that the whole Eurozone might fall apart
and that would be disastrous for trade and would also lead to a big worldwide recession. Furthermore, most of Greece’s debt was owed
to German and French banks. So in a way, the governments of the biggest countries in the
Eurozone were lending money to Greece so that Greece could pay back the banks of the biggest
countries in the Eurozone. So in exchange for these loans, Greece agreed to austerity
measures – basically they raised taxes and cut pensions and other benefits. And this kind of worked insofar as Greece
did decrease their budget deficit from 25 billion euro in 2009 to just 5.2 billion euro
in 2011. But it also caused the Greek economy to contract dramatically. People had less
money to spend as their pensions shrank and their taxes rose, and that in turn led to
the failure of businesses and fewer jobs. And as the economy shrank, so did tax revenues,
because the economy is the thing that governments tax, and in the end, nothing really got better.
Greece still didn’t have a sustainable economy, so in 2012, the troika loaned them another
130 billion euro. And then over the last couple years there
were some real signs of life in the Greek economy, and it looked like things were starting
to bottom out. But unemployment is still over 25 percent, and I wanna emphasize that economic
crises are also humanitarian crises. 30 percent of people in Greece now live in poverty, and
almost one in five doesn’t have enough money to buy food that will meet their daily nutritional
needs. The Greek depression has been as deep as the
United States’ Great Depression. And it may not be over. But from a wider European economic
perspective, things have gotten a lot better in the last five years. Private European banks
own much less Greek debt than they did in 2010, the economies of Ireland and Portugal
are much healthier, and so it’s much less likely that the Greek economy collapsing,
or even Greece exiting the euro, would be catastrophic for the rest of Europe. Okay so flash forward to the end of last year,
a new leftist government is elected in Greece, and they say “no more austerity, we can’t
take it anymore.” Their argument, and many economists would agree with this, is that
austerity will never work because the economy just keeps shrinking and shrinking and shrinking
at least as fast as the deficit does. In response to this, the troika stopped sending
loan payments, and then there were a bunch of negotiations, and then the Greek government
put it to a referendum: “Should we continue with austerity, so that we can get this loan
money, or should we just say no?” And then on July 5th, the Greek people voted
overwhelmingly to say, “no.” Now technically this was a symbolic vote, because the troika
had pulled their offer of the table on June 30th. But yeah, that’s how we got to where
we are. Now without these payments coming into Greece, there is suddenly a very serious
liquidity crisis in Greek banks. Basically Greek banks may have only 500 million
euro left, which is like 45 euro per person in Greece. Many ATMs are out of cash, others
can only dispense 10 euro notes because they’re out of 20s. And if this continues, Greece will be forced
to print some form of alternate currency to make payments to retirees and government employees. And that would be the so-called “Grexit,”
a Greek exit from the Eurozone. And nobody knows quite what would happen then, I mean
what the economic implications would be, but also the political and legal ones. Now Hank, normally in a situation like this
– 25 percent unemployment, shrinking economy, liquidity crisis – Greece would just print
more money. But they can’t, because they’re part of the Eurozone, and as previously noted,
the European Central Bank decides how much money to print. And that gets to the root of the problem.
The Eurozone wants to be a transnational currency, but each country inside of it answers to their
own citizens. Germany doesn’t wanna print more money, it would be bad for the German
economy, and they’re not keen on sending more money to Greece; from their perspective, it’s
not their fault that Greece can’t pay their debts. But from a Greek perspective, it’s hard to
see how that country has benefited from these so-called “bailouts.” Many Greeks feel that
the troika’s bailouts really only bought time for other European nations and their banks
to distance themselves from Greece’s financial problems. Hank, this inability to decide just how unified
they should be is the real existential problem of the Eurozone. Obviously, Hank, there’s a lot of blame to
go around here. But in the end, if you can’t listen to the narratives of others, if you
can’t construct an idea of the Eurozone in which all members are members of some “us,”
then you can’t expect to share a continent effectively, let alone a currency. Hank, I’ll see you on Friday.

  1. The problem with Greece is the Nationalism, don't get me wrong, Greeks are awesome, but there are like 20 people like the famous YourWorstNightmare, Theodore Grapas, Anastasia Wall, etc. On YouTube that are nationalistic fucks and comment on every youtube video that" oh Macedonia is Greek, Oh Cyprus Is Greek, Oh Greece isn't in an Economic Crisis, oh Everything is Greek". And obviously the government of the country. Like smh they have their own problems why worry about other people's….

  2. I wonder how so many countries work with just 1 currency . When they have different economic conditions & challenges . Its absolutely ansurd

  3. Sometimes I look at Greece and wonder what the hell happened! That just goes to show that nothing lasts forever. I'm looking at you, USA.

  4. HAHAHAHAHAHAHA! That's cute over here in Lebanon we've done goofed a long time ago since the State owes money *to it's own banks*. Yes the state is indebted not to other countries but to it's own banks with a debt equal to 146% of it's GDP and a debt of 101228 billion LBP which wouod be equal to 67 billion U.S dollars which is insane for such a small country and while Europeans and Americans are complaining about immigrants let me remind you that we have 2 million immigrants over here (and we don't like it like not at all) which caused around 30% of Lebanese populace to go unemployed. Yaaay. Pfft the Greek crisis what a joke…
    P.S: I was kidding the situation here is much more stable than in Greece as se don't suffer as much as they do when it comes to daily needs and I sincerely hope that things get better for them, and fun fact before all this crisis Lebanese in general loved to visit Greece on their vacations as fellow members of the midetteranian union and they admired the Greek history and it's beautiful country.

  5. Υup we got screwed big time. And we still are. There is little hope on the horizon,but still we try.

    I like the EU as an idea but it has failed my nation. Right now,i feel that it exists only to make us an economic protectorate of Germany. Even the german magazine"Bild" which should be noted,does not view us complexly or has any empathy for our situation wrote that perhaps greeks should vote in the german election,it's only fair to choose your ruler.

    I am 18. I want to be a physicist when i grow up. I got into the hardest to get university through hard work. Everyday i have a terrible 1.30 hour long commute and my life is dictated by unpredictable buses. We want to get out of this. Greeks work most hours than anyone in europe but yet so little of our production goes towards helping us.

    I am sorry this is not a coherant comment but currently i am overwhelmed. My generation had its future stolen and we try to create a new one. I hope no other nation struggles like we do and that the rest of the world tries to understand our situation before judging.

    Best wishes

  6. The Greek government lied about the state of their economy & amount of debt they owed, to get the country into the Eurozone. Simple.

  7. Way to long explanation.
    At the Invention of the Euro there was the idea of having a EZB with a independent control system for all states in the EU but most disliked control so they wehre allowed to control themselves. Now the Troika forces the sellout of the country property to pay the banks and  investors. Everyone is happy expect the population. Good thing there is justice in our world
    How could this happen? First was corruption, here is how this works
    Then there is stupidity. Here a info show about our future
    Solution to most our problems: remove corrupt, remove idiots, control all idiots and make things transparent.
    Dam wehre is my nobel prize? I must be a genius, i solved the bank crisis and the Euro crisis in under 3 Min. Even my ass is smarter than politician, when i was born the doctor was thinking my ass is my head for six hours (not kidding), another doctor made the Caesarean section luckily.
    And don't forget life is deadly so better quit before its to late.
    Thats all folks

  8. Love from GREECE my dream is to meet you one day love you so much be happy and remember that we are with you in every step you take❤❤❤❤❤

  9. You forgot to mention that Greece was caught lying about how much debt they were in. Investors didn't simply raise their interest rates out of nowhere. Your political bias is showing.

  10. Γιατί οι νέοι Έλληνες επιστήμονες να επιμένουν να γλείφουν αναρχικά και μαοϊκά στελέχη Συνιστωσών για να τους βολέψουν σε μια θεσούλα στο δημόσιο, με μισθούς πείνας και συντάξεις-επιδόματα;
    Γιατί δεν αποφασίζουν να σώσουν τις οικογένειες τους και να διαγράψουν το μέλλον τους σε στέρεες βάσεις, σε κάποια προηγμένη Χώρα της Βόρειας Ευρώπης;

    Εκεί υπάρχουν τεράστιες ελλείψεις νοσοκομειακού δυναμικού, άριστες συνθήκες εργασίας, αξιοπρεπής διαβίωση.
    Η Γερμανία χρειάζεται επειγόντως εισροή 500.000 νεαρών εξειδικευμένων μεταναστών το χρόνο, κάθε χρόνο, μέχρι και το 2050!
    Οι πολλές συνταξιοδοτήσεις εργατών σε συνδυασμό με τα εξαιρετικά χαμηλά ποσοστά γεννήσεων, συνιστούν μέγιστο κίνδυνο για την εκεί ανθηρή και στιβαρή Οικονομία.
    Μπορεί να ρισκάρουν και πλήρη κατάρρευση!
    Σε μία του υπολογιστική μελέτη, ο Γερμανός Υπουργός Οικονομικών Βόλφγκανγκ Σόιμπλε, κατέληξε πως το Γερμανικό χρέος θα ανέβει στο 220% του ΑΕΠ τους (!) το 2060, αν συνεχίσουν την τωρινή πορεία.
    Σε καμία Χώρα, και κανένα κοινωνικό μοντέλο του Πλανήτη, δεν έχει ποτέ αναστραφεί, ιστορικά, μία τόσο χαμηλή υπογεννητικότητα.
    Άρα είναι μονόδρομος η πρόσκληση-αποδοχή-ενσωμάτωση εκατοντάδων χιλιάδων μεταναστών ετησίως.

    Παρόμοιες οικονομικές μελέτες επιβεβαίωσαν την ίδια, ή και μεγαλύτερη, ανάγκη για αποδοχή εκατοντάδων χιλιάδων μεταναστών ετησίως, από όλες τις Χώρες της Ανατολικής Ευρώπης.

    Ίδια είναι η οικονομική κατάσταση/αθρόες συνταξιοδοτήσεις/υπογεννητικότητα/κτλ και στις Βόρειες Σκανδιναβικές Χώρες, παρόλο που δεν έγινε σχετική μελέτη υπολογισμού του αριθμού των ξένων μεταναστών που χρειάζονται ετησίως.

    Σχετικές αναφορές


  11. Pretty much this is the whole story of our economy, which I am not proud of.I am 20 years old and seeing my life of my parents at a young age losing first my mother and dad's income in his store getting always lower and lower (many weeks we total incomes of 100eur which is depressing) brings me back really sad memories.Many students in my high school we're fainting because they haven't eaten for days, even me I was almost ready to faint one morning .The unemployment in the ages 18-25 is at the time of writing this at 56% , most of my friends are working on party time jobs, with not a contract or anything totally illegally with payments that can pay the basics (5€ per hour in night club for example). And also the whole problem with the negative balance of incomes and expenses started after WWII when the government had many utilities for electricity,water suppling, communications, agricultural products that The expenses every year was more than the outcomes.That policy was common for every government till 2008.And a last thing,the most important part in the whole economic crisis was the devaluation of drachmes (1eur=338 drachmes)and the price adjustments were not there.A loaf of bread cost before euro 90-100 drachmes and today the price today is 0.90 of a euro,300% increase,and this was only one of the many common goods with no proper pricing policy (like the 75% products back then)

  12. Listening to this guy makes you realise what a load of make believe bollocks economics actually is. Even the experts don't have a fucking clue!!!! It is all German Imperialism. A low currency to benefit Germanys booming economy. Now the EU is technically defaulting itself by buying back its own debt!!!. Once the UK leaves the cash injection will be gone so the euro will fold and good riddence

  13. what about laziness of greek ppl? and high cost of millitary? they have 10m population yet their military cost over 300b euro. Greece should stop spending all of his money to military.

  14. The third best student , currently a professional economist who admits that can not even think of a possible solution for a country with a huge debt….. To understand the problem ? My mother who studied six years at the elementary school not only understands but knows with details from where the crisis started , but she can not think , same as John can not, of a solution.

  15. Αγαπητέ κύριε Γιάνναρε,

    Σωστά όλα όσα γράψατε, και λίγα λέτε.


    Θυμηθήκατε να πείτε στους δημοσιογράφους του αραβικού τηλεοπτικού δικτύου "Al Jazeera" πως επί κυβερνήσεως Νέας Δημοκρατίας χιλιάδες απόφοιτοι Ιατρικής του ΑΠΘ πλήρωναν 300 ευρώ σε διεφθαρμένους καθηγητές Πανεπιστημίου για να περάσουν με άριστα τις πτυχιακές τους εξετάσεις;
    Ακόμη δεν ανακλήθηκε κανένα από αυτά τα χιλιάδες αγορασμένα πτυχία του ΑΠΘ.

    Θυμηθήκατε να πείτε στους δημοσιογράφους του αραβικού τηλεοπτικού δικτύου "Al Jazeera" πως επί κυβερνήσεως Νέας Δημοκρατίας 2.000 διεφθαρμένοι γιατροί ΕΣΥ, στα δημόσια νοσοκομεία, τοποθετούσαν ακατάλληλα ορθοπεδικά σκευάσματα της εταιρίας DePuy σε νοσηλευόμενους ασθενείς, για μίζες;

    Θυμηθήκατε να πείτε στους δημοσιογράφους του αραβικού τηλεοπτικού δικτύου "Al Jazeera" πως επί κυβερνήσεως Νέας Δημοκρατίας 4.500 διεφθαρμένοι γιατροί ΕΣΥ, στα δημόσια νοσοκομεία, υπερσυνταγογραφούσαν απερίσκεπτα πανάκριβα αχρείαστα πρωτότυπα φαρμακευτικά σκευάσματα της πολυεθνικής εταιρίας Novartis, για να λαμβάνουν τακτικές παχυλές μίζες από τον τροφοδότη Ελβετικό τραπεζικό λογαριασμό της πολυεθνικής εταιρίας στους εδώ καταθετικούς τους λογαριασμούς;

    Έως πότε θα καταπίνονται τις δικαιολογίες τους για τη διαφθορά με το τσέπωμα μαύρου χρήματος, οτι δήθεν έκαναν κλινικές νοσοκομειακές έρευνες, οτι δήθεν έκαναν ομιλίες σε διεθνή συνέδρια, οτι δήθεν δημοσίευαν επιστημονικά άρθρα, οτι δήθεν έκαναν παροχή ιατρικών υπηρεσιών στα στελέχη της εταιρίας, κτλ;

    Πότε θα παραδεχτεί ανοιχτά η Νέα Δημοκρατία οτι όλοι αυτοί οι επικίνδυνοι επίορκοι γιατροί έθεταν εσκεμμένα σε θανάσιμο κίνδυνο, κατά συρροήν, τους ανυποψίαστους νοσηλευόμενους και μη ασθενείς;
    Πότε θα παραδεχτεί ανοιχτά η Νέα Δημοκρατία οτι όλοι αυτοί οι φακελάκηδες τσάκισαν οικονομικά τα Ασφαλιστικά Ταμεία, τον ΕΟΠΥΥ, το ΕΣΥ;
    Πότε θα αποδεχτεί επιτέλους η Νέα Δημοκρατία οτι 4.500+2.000 γιατροί ΕΣΥ, περίπου ένας στους 2 δηλαδή, έπρεπε και πρέπει να απολυθούν οριστικά από τα πόστα τους στο ΕΣΥ;

    Γιατί δυσκολεύεται να παραδεχτεί τα αυτονόητα το κόμμα της Νέας Δημοκρατίας;
    Μήπως οι 4.500+2.000 γιατροί ΕΣΥ ήταν κομματικά στελέχη της κεντροδεξιάς παράταξης;
    Μήπως υπήρχαν συμφωνίες κάλυψης των παρανομιών των διαφόρων φαρμακευτικών εταιριών σε ανώτερο πολιτικό επίπεδο;
    Μήπως γνωρίζουν οτι υπάρχουν και δικά τους υψηλόβαθμα πολιτικά στελέχη μπλεγμένα σε αυτές τις κακουργηματικές υποθέσεις, οπότε κάνουν το παν για να καλυφθούν/ξεχαστούν/παραγραφούν τα εγκλήματα;

  16. Prior to Greece joining the euro, they had one of the lowest debt to GDP levels in Europe. The reason countries of southern Europe got into such a debt mess, is mainly due to the design of the common currency union; without a central fiscal economy authority "Federation like the US" controlling and setting a unified euro economy policy and collecting taxes for the union and setting agreed limits of state debt, providing federal support to the states like the US federal government does and a central bank that can issue euro bond and set unified interest rates, you end up with an incomplete union that advantages the stronger economies. The stronger economies get a competitive export advantage with a devalued currency and the weaker economies products became less competitive and their terms of trade worsened over time. At the core of this euro mess, the stronger economies exported deflation to the weaker states, while the weaker economies exported inflation to the north. without a unified federal structure and euro bond, when the crisis hit, there was no federal government there to bail them out with euro treasuries, like the US government did for the state of Nevada after the GFC. A bad design that will end up tearing apart the EU and fueling European divisions and nationalism. WHAT A MESS.

  17. He read Wikipedia and some articles and he thinks he knows economics. I have PhD in Economics and a video in YouTube and somehow more reliable than a thesis.

  18. Θυμήθηκαν να απαριθμήσουν οι ομιλητές στους προσκεκλημένους του 2ου Διεθνούς Συνεδρίου για τον Τουρισμό Υγείας στην Κω τα χρόνια ανταγωνιστικά μειονεκτήματα της Ελλάδος;

    1) Η μόνη Χώρα στην Ευρώπη με τόσο πολλούς απόφοιτους Ιατρικής με πλαστά ή αγορασμένα πτυχία, που παραμένουν ατιμώρητοι!


    2) Η μόνη Χώρα στην Ευρώπη με χιλιάδες διεφθαρμένους γιατρούς που μιζάρονται συχνά για να υπερσυνταγογραφούν αχρείαστα φαρμακευτικά σκευάσματα, τσακίζοντας τους προϋπολογισμούς των δημόσιων νοσοκομείων, του ΠΕΔΥ, του ΕΟΠΥΥ, των Ασφαλιστικών Ταμείων, αλλά παραμένουν ατιμώρητοι στα πόστα τους!
    Όλοι αυτοί οι επικίνδυνοι επίορκοι γιατροί έθεταν εσκεμμένα σε θανάσιμο κίνδυνο, κατά συρροήν, τους ανυποψίαστους νοσηλευόμενους και μη ασθενείς.


    3) Η μόνη Χώρα στην Ευρώπη με εκατοντάδες διεφθαρμένους Ογκολόγους, σε 100 δημόσια νοσοκομεία, που στερούσαν από καρκινοπαθείς τις σωτήριες χημειοθεραπείες, για να πουλήσουν τα ακριβά φάρμακα στη μαύρη αγορά, στο Εξωτερικό!


    4) Η μόνη Χώρα στην Ευρώπη όπου οι ακτινοθεραπείες σε καρκινοπαθείς γίνονται από υδραυλικούς!


    5) Η μόνη Χώρα στην Ευρώπη όπου οι συνταγογραφήσεις αντιψυχωσικών φαρμάκων αυξήθηκαν 3500% μέσα σε λίγα χρόνια!


    6) Η μόνη Χώρα στην Ευρώπη όπου οι συνταγογραφήσεις φαρμάκων δήθεν "γαστροπροστασίας" είναι σε τόσο υψηλά επίπεδα, παρόλο που αυξάνουν τους καρκίνους στομάχου 8 φορές!


    7) Η μόνη Χώρα στην Ευρώπη όπου οι συνταγογραφήσεις αντικαταθλιπτικών φαρμάκων αυξήθηκαν 1100% μέσα σε λίγα χρόνια, παρόλο που αυξάνουν τη θνησιμότητα των ασθενών 33%!


    8) Η μόνη Χώρα στην Ευρώπη όπου ροκανίζονται συστηματικά Ευρωπαϊκά κονδύλια σε μαϊμού επιδόματα προσωπικού, για ανύπαρκτο κλινικό έργο!


    9) Η πρώτη Χώρα στην Ευρώπη σε ενδονοσοκομειακές μολύνσεις και θανάτους από ανθεκτικά μικροβιακά στελέχη στα χειρουργεία!


  19. If debts are spent on new roads, new ports, new technologies, then it usually not a big problem since these can generate more income. Spent on welfare programs can be very bad because they don’t generate more income, and make people less willing to work.

  20. There is oil in the Aegean sea , and also there is conflict of interests on the Gas Pipes that will transfer natural gas to other countries …… Also there is a lot of gold in Chalkidikh,and natural gas both in Chalkidikh and especially Crete, hence the problem with FYROM SKOpJe naming "macedonia by stealing the "Greek/Hellenic Macedonian " history and region name without the people of FYROM even knowing it …….

  21. "Its not their fault that Greece can't pay their debts" Flashbacks to when the nazis stole 3/4 of the greek gold and fuckin murdered everyone

  22. its clear you have knowledge of the financial system, as an economist student its clear to me they steal wealth through inflation and the changes in the purchasing power of currency leaving the burden on the civillians of the country. why dont you start exposing the system

  23. Should stick to what he does best; teen tear-jerker fantasies!! Tool for the establishment, hope you choke on your own BS

  24. The 2004 Olympics cost the Tax Payer's of Greece Billions. They said don't worry though these Olympics and New Stadiums will Boom the Economy. Today the Olympic Stadiums sit in Ruins. Most of the Stadiums have not been used since the Olympics.

  25. I have always been a fan of your videos. I study my masters in economics at Stellenbosch university in South Africa and I am so happy to find out you are an economist! that is really cool, you are giving all economists a good name! thanks 😉

  26. You're a stupid capitalist tool. You expect that the Greek people who had nothing to do with running up this debt have to pay it back because corrupt politicians in the EU decided to bail out the banks! It's the banks who should bear the loss of their investments, not the Greek people. You are simply trying to justify poverty and evil! You're a stupid person, a lousy economist, and horrible evil servant of rich jerks that are acting like the mob when they deal with the greek people. And your brother is a moron, too. I hope you both eat nothing but GMOs for the rest of your horrible useless lives.

  27. One of your references is wikipedia and the other is just some report written by an uncredited student. Really good video but I would have given better sources.

  28. What I find extraordinary how anyone can lay the problem for the Greek crisis on anyone but the Greek government who failed to raise enough revenue to service the debts they have created. Had they done this to US bankers the US government would have made sure that the entire debt would have been repaid ! Greece is a corrupt failed state

  29. Deficit spending is NEVER good.  By definition, that is spend more than what you have, i.e. borrowing someone else's money.  Because borrowed money is (usually) paid back with interest, one is worse after receiving a loan than they were before.

    Why do you jump around the screen?

  30. You talk a lot but you skipped the real reasons and most important point about the situation. I just hope you are ignorant and not doing it on purpose.

  31. GREXIT….. Greece should leave the EU, otherwise each single day Greece is getting more poor and more debt. After GREXIT, Greece should deny the debt and declare its INDEPENDENCE..


  33. I call this a country for sale. Uh, oh! Where the European Union would take opportunity to step in, and own the country. But that is just my opinion. 😳

  34. Once you have 2/3 of your population age 6 to 85 not working, and supported by the remaining 1/3, you are in trouble. Allowing people to retire at age 50 is a bad idea. Allowing students to put off paying for the unproductive years they were in school is a bad idea. A

  35. War got the US out of the Great Depression, why doesn’t Greece just invade the Middle-East like they did 2000 years ago

  36. Love the fast pace in this video. This is what i love about youtube. 8 minutes giving me info that the state owned television in Denmark would have used hours and weeks for. Thanks.

  37. Germany wants to give us loans.They profit from it as they have loads of money on banks not invested.This is why we got this huge first loan.Watch Yanis Varoufakis explaining in details how bankers are profited from all this

  38. The introduction of the Euro was simply idiotic, which is why my country was against it, but who ever listens to their population in a democracy, right?

    If they wanted to Introduce a single currency it should have been a single currency for Germany, Netherlands, Belgium, Austria, Denmark and Sweden. A single currency for the Southern European countries and different currencies for the eastern European countries since they have developing economies. That way similar economies have similar currencies and once the economies would have grown enough and be stable enough they could have slowly let other countries join the Western Currency. The same should have been done with the free movement of people treaties since now it has only led to Eastern losing massive amounts of it's population and slowly becoming incapable to grow economically as a result. I like the idea of Europe but they consistently make idiotic decisions that end up hurting us in the long run resulting in dissatisfaction in the EU culminating in things like Brexit and massive populist and Nationalist movements.

    Also just an idea, while I don't think referendums are necessary everywhere they could certainly inquire the people when it comes to massive decisions and you know actually do something with the result.

  39. If you intended to just parrot the propaganda in the media, why did you bother to do that in a video, people could read it, watch or listen to that media directly.
    As an economist, you failed to process the actual data and discover the truth yourself. Most likely, you still don't have a clue.

  40. Much more useful and precise insight than any news papers and biased media, by an american, kudos. So, 4 years later the leftists just bended the knee, nothing catastrophic hapenned (Grexit, uncontrolled collapse), except that Greece had lost liquidity injection opportunities. Markets do not trust leftists and champagne socialists, they trust liberal economies .

  41. The most important factor was hardly mentioned. Corruption. Corrupt politicians took huge loans from Germany in order to pay corrupt businessmen for infrastucture projects where lots of money dissapeared. Then the politicians and businessmen invested their stolen money in Germany and bought Mercedeses. Then this money went to very rich Germans. Then poor Greek people don’t want, or can’t, pay taxes to repay the loans that they got very little from. Then the German politicians tell poor Germans that the money was stolen by lazy Greeks and that they must do with less wages. Then the Germans are angry at the «lazy and crooked» Greeks and the Greeks are angry at the greedy Germans. And rich corrupt people in both countries are very happy.

Leave a Reply

Your email address will not be published. Required fields are marked *