GREECE BORROWED MORE THAN IT COULD AFFORD!
BUYING CRETE PROPERTY - the truth behind the Greek bail out
There's no doubt Greece has been made the scapegoat of Europe, being pilloried in the media spotlight with half truths and distorted facts. Much of the media coverage refers to - bailout, aid, financial assistance - all giving the impression that cartloads of cash is arriving in Athens for a great giveaway.
The reality is somewhat different. Shut out from international markets, the Greek government was forced to borrow from Germany, France and others, rather than from banks and investors that would normally have bought government bonds. Greece was able to borrow from these countries at about 3.5%. As Germany borrows on the market at around 2% it makes a whopping 75% profit when lending to Greece. With Germany advancing 8.4 billion and France 9 billion, these countries stood to make about 600 million euros in profit.
But the 130 billion bailout will help all that won't it? The short answer is no. Nearly 94 billion will go to pay interest, recapitalize banks and private sector payments to restructure borrowing. POT AND KETTLE!
Greece was never the only one. Too many governments - the UK included - allowed sovereign debt to get out of hand. In 2012 the UK will spend £705 billion to help keep public services going - but will raise only £5,750 billion in tax revenue. That gap, plus existing borrowing, means the country's deficit is well over £1 trillion - equivalent to every man, woman and child in the UK owing £16,400. Yet the UK government has not yet introduced savage austerity measures such as those being endured by the Greek people.
As Greece makes valiant efforts to reform - just as the UK had to do in the 1970's - Greece should not be treated as the pariah of Europe, when there are so many other countries in a similar position. GREEKS ARE LAZY!
Well look at the facts. The average German works only 1,390 hours per year, while the average Greek works 2,119 hours per annum. So who's lazy?
The Greek people are enduring tremendous hardship with increased taxes, salaries and pensions cut overnight and the minimum wage slashed to less than £500 per month - that's nearly 30% less than the minimum wage in Spain and 50% of that in the UK. The 'Troika' of lending bodies to Greece have crushed the country into accepting cuts so deep that Greece will experience a depression far deeper than that of the infamous Great Depression during the 1920's in America - the world's worst ever economic downturn. SO WHAT DOES THAT MEAN TO ME?
The austerity measures affect the incomes and pensions of locals and in the longer term, with lower wages, this will gradually drive down the cost of living. As you probably have capital and pensions based in sterling this should mean you get even more for your money.
Crete is the location which accounts for 85% of overseas buyers in the Greek property market. As it's cheaper to live in Crete than it is in the UK - even now - that can only be better for you. Coupled with a far better quality of life and not to mention 320 days of sunshine and no more freezing cold winters, you owe it to yourself to turn that dream of yours into reality - and check out the best value for money when buying a home in Crete.
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