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In Greece..."the number of people unemployed has shot up by 40% over the past 12 months; the jobless rate now stands above 16%. Among young people it's a devastating 42%...the government's latest plans envisage another four years of slash and burn, taking the deficit from 7.5% of GDP this year to 1% by 2015. It's extreme fiscal masochism, and it isn't going to work."
"...the economy expanded by a miserable 0.2% in the first quarter of 2011"...and... "Over the past year, it has contracted by a total of 5.5%, and forecasters – including Greece's creditors, the IMF and the ECB – are expecting a further catastrophic decline of more than 3% over the coming 12 months."
"Writing assets down to fair value and then recapitalizing banks should be the first priority in restoring economic growth after a banking crisis. Sadly, Europe went in the opposite direction and tried to ensure that no bank, regardless of how insolvent [it was], defaulted on its liabilities," wrote expert Leigh Skene.
ALSO: By P. Inman
New figures suggest that French, German and UK banks have exited from Greece, Portugal, Spain and Ireland...to bolster their reserves.
This summer's planned EU stress tests could increase the exodus as banks insure only the safest risks.
The French banks especially have withdrawn from Greece to avoid the effects of a default.
http://www.guardian.co.uk/business/2011/jun/12/french-banks-quit-greece
