Greece financial crisis simplified !


Greece has been basically spending money it doesn't have,
 and that for years........
There was a time when the Global economy was in a better state, so different governments of Greece took advantage and burrowed a lot of money to finance prestige projects like the Olympic 2004 and/or raising wages of public servants to raise the standards of living and expanding its middle class…As a result Greece continuously built up a bigger and bigger deficit.
The definition of deficit is…The difference between the amount a country brings in with/through Tax and what it spends.
This method, caused Greece to enjoy a so called “boom” for years, not forgetting the highly successful and expensive Olympics that supplemented a domestic impression of stability and well being…. But it wasn’t long before the Global economy started to stumble, Greece started to stumble too.
Banks that lent the money started to declassify Greece as a country with financial management problems….....argument was, that with high probability , Greece will have difficulties in paying back its debts.....The legitimate worries were specifically, Greece not being able to pay its loans and declare bankruptcy, which could have kick-started an unpleasant chain reaction nobody wanted….

To cover the risk, banks changed their conditions when lending more money to Greece , this incidentally made matters worse, specially because it was so publicized. …So, eventually Greece went elsewhere looking for help !
Greece started to Burrow Money from EU countries and/or from the International Monetary fund, They loaned at better rates but, tougher conditions. These tougher conditions were not only of financial nature, but of social and political nature… A de facto reform in Greece was the precondition, A long due action in order to bring some order in this house of chaos.. The Greeks promised to oblige.
Greece had to promise to cut its budget deficit, and this was the main objective demanded of them !
It is the implementation of these reforms that has brought Greece to its knees and the reason for the extreme reactions of its people towards the more dominant and richer nations of the EU. Now turning the tables on everyone that has loaned them money for years, next to the recent childish political kicking, screaming and threats…....makes one wonder !

Question is, should this populist behaviour now also be rewarded with debt relief and inevitably more loans ?

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