Here’s a total shocker, unless you’ve been paying attention: Austerity in Greece is failing to fix its budget woes.
According to Reuters, the 2010 deficit will come in at 9.2%-9.3%, which is well above goals of 7.8%.
The reason is simple: The economy is getting worse. Budget cutting is recessionary, and you can’t cut enough to offset the decline in revenue.
The same phenomenon is playing out right now in Ireland, which is why everyone knows that country is doomed.
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