Why are markets not convinced by the endless promises of aid to Greece?
Maybe because the aid can’t possibly work.
CNBC quotes a new Roubini note which really seems to get at the crux of the issue.
“These issues within the euro zone stem primarily from a loss of competitiveness, high wage growth and labour costs which outstripped productivity, undisciplined fiscal policies and, crucially, the appreciation of the euro between 2002 and 2008.”
He goes on to note that since nothing the EU or IMF is doing actually addresses these issues, there’s really very little hope that the problem is being solved.
That being said, the EU/IMF can probably kick the can down the road a little bit.
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