Love him or hate him, Putin is right. While the media's attention remains on the Greek fiscal crisis, the bigger debt crisis is in the US, and the world is starting to take notice. It's high time the Obama administration also looks into bolstering the real economy instead of the Big Giveaway to the Wall Street sharks who thrive on volatility (generates more fees).
Of course, Putin also knows how to generate fees, the old fashion way. BusinessWeek reports that under Putin's rule, Russian arms exports more than doubled over the last decade to $8.6 billion last year.
Back to Greece. Dan McCrum, a columnist for the FT, was on Tech Ticker today telling people Relax, Greece Will Be Bailed Out. And So Will The Rest Of The PIIGS:
For the past couple of weeks, the global markets have lurched between a state of bliss that bankrupt Greece will be bailed out to a state of panic that it won't.
According to our guest Dan McCrum, a columnist for the Financial Times, the latter fears are overblown.
Of course Greece will be bailed out, McCrum says. The bailout won't be called a bailout (because people don't like bailouts), but it will be a bailout.
And what about the other troubled European countries in the group known as the
"PIIGS"? (Portugal, Ireland, Italy, Greece, and Spain.). If Greece gets bailed out, won't these countries immediately come begging with their own hands out?
Yes, says McCrum. And they'll get bailed out, too. Basically, German citizens will have to pick up the tab for their less-productive Euro brethren.
One thing that won't happen, McCrum says, is that the EU will fall apart. This project (the EU) has been too long in the making, and Europe isn't going to give it up over a few annoying bailouts.
And, the silver lining: A weaker euro currency will be met with applause by Europe's exporting nations.
Judging by the market's reaction today, most participants also feel a big, fat Greek bailout is in the offing and Europe won't fall apart.
Finally, watch this Russia Today interview below with financial blogger, Megan Carpentier of The Washington Independent, where she explains the derivatives fiasco that hit Greece and what the fallout from this debacle will likely be. Will those giant squid tentacles finally be revealed and what will be the ultimate fallout from this mess? Right now, it's anyone's guess.