greek economy

The troubles with the Greek economy continues to plague the world markets, even as late as this week there was more concerns about the Greeks and the effect it has on the share market, which in turn affects yours and mine superannuation.

Have you stopped to ask why the Greeks are in such difficult times? Has anyone tried to explain to you how could this happened? Last November I gave an explanation so it may be worth that I re-publish it and let’s see if it will help you understand it in “layman” terms:

It is a slow day in a little Greek Village. The rain is beating down and the streets are deserted. Times are tough, everybody is in debt and everybody lives on credit.

On this particular day a rich tourist is driving through the village, stops at the local hotel and lays a $100 note on the desk, telling the hotel owner he wants to inspect the rooms upstairs in order to pick one to spend the night.

The owner gives him some keys and, as soon as the visitor has walked upstairs, the hotelier grabs the $100 note and runs next door to pay his debt to the butcher.

The butcher takes the $100 note and runs down the street to repay his debt to the pig farmer. The pig farmer takes the $100 note and heads off to pay his bill at the supplier of feed and fuel.

The guy at the Farmers' Co-op takes the $100 note and runs to pay his drinks bill at the taverna.

The tavern owner slips the money along to the local prostitute drinking at the bar, who has also been facing hard times and has had to offer him "services" on credit.

The hooker then rushes to the hotel and pays off her room bill to the hotel owner with the $100 note.

The hotel proprietor then places the $100 note back on the counter so the rich traveller will not suspect anything. At that moment the traveller comes down the stairs, picks up the $100 note, states that the rooms are not satisfactory, pockets the money, and leaves town.

And that, Ladies and Gentlemen, is how the Greeks got themselves in trouble:

No one produces anything.

No one earns anything.

And the whole village thinks they are out of debt…….