Greece Is "Running Out of Cash"
Nov 1st 2012 6:55AM
Greece cannot seem to work its way out of the financial news by settling on austerity programs that would trigger aid from the International Monetary Fund and European Union. Internal battles among political parties have held up progress.
Worse, the Greek economy continues to implode as a six-year recession turns into a depression. Analysts now expect debt-to-GDP to reach nearly 200% in 2014. If the country's neighbors believe it is essential to keep Greece in the European Union, they will need to accept that its deficit is a moving target and that current aid is no more than a stop gap.
According to CNBC, Thanos Vamvakidis, head of European G10 currency strategy at Bank of America Merrill Lynch said: "Greece is running out of cash. The current strategy is really not working and there is substantial political risk."
Douglas A. McIntyre
Filed under: 24/7 Wall St. Wire, Austerity, International Markets, Politics