June 30, 2015

Greece could see economic Depression

Tourists in Greece
My guess, in our investment world of short sound bytes, is that few have looked into the Greek proposal and understand the ramifications of the possible compromise on the country's economic growth.

Last night I reviewed the pension plans (early retirement to be gradually curbed over the next 10 years), the general retention of a value-added tax, tax hikes for high earners, a special corporate tax and luxury tax hikes, defense spending cuts, rules of primary budget surpluses, debt rollover, and so forth.

A depression for the region is likely in the cards.