Beware Greeks Accepting Gifts?

Beware of Greece accepting a gift? Yes, beware of the Greek Prime Minister accepting a deal from France and Germany and then going home and asking for a vote on the deal that was agreed upon.

I don't know anything about the politics of Greece, but I do understand a little bit about bonds and debt service. The deal that was offered to Greece was a 50% "haircut" that those holding Greek bonds would take in exchange for Greece receiving financial assistance. There is a difference between finance, paying off your debts, and politics which is an entirely different ball game.

This latest move by the Prime Minister of Greece has created a great deal of uncertainty at a time when uncertainty is the last thing the world capital markets need. Capital markets around the world are going to suffer because of the vote purposed by the Prime Minister of Greece.

I sure hope that the vote can be done quickly and that the Greek people will accept the bailout. There are other weak countries hanging in the balance, and the last thing the world economy needs is a collapse of the capital markets.

I find it interesting how one relatively small country can cause so much damage to the world's economy and world confidence in the capital markets. I think someone needs to build a better financial system. The Euro is not working if Greece can take down not just Greece, but several other European countries as well. Cheating in any system of currencies will eventually fail. The Euro is about ready to go down for the count.

Stay tuned.