Greece And Ireland Deficits Rise Again

April 22nd, 2010

Greece and Ireland – it looks like a terrible situation just got a whole lot worse. Both Greece and Ireland had much larger budget deficits last year than expected and the Greek data may be revised further due to its unreliability, the European Union’s statistics office said, sending the Euro lower earlier this morning. A possible continued short on the FXE is a great idea short term.

The Greek government has said it wants to bring the deficit down to 5.6 percent of GDP in 2011, 2.8 percent of GDP in 2012 and 2 percent by 2013 from 8.7 percent of GDP in 2010. This is EXTREMELY hard to do when the Gov’t debt makes up over 95% of GDP. So if they reduce GDP then how are they going to pay for the increasing debt structure? You tell me? Doesn’t add up and you all KNOW that other countries are going to get sucked in!

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