Ten years ago, the implosion of Lehman Brothers ignited a financial crisis whose impact and effects were felt virtually across the globe as banks and financial institutions everywhere that were exposed to subprime lending, formed part of a long chain of complicated and interconnected derivatives, and partook freely in Wall Street shenanigans.
In Europe, the global financial crisis that started in the United States did not reach shore until late 2009, and the first victim was the land that gave birth to democracy and laid the foundations for the emergence of Western civilization.
Enter Greece and an ongoing debt drama, with catastrophically spectacular economic, social, and political ramifications, that has no end in sight.
Indeed, now into its eighth year, Greece remains entirely dependent on international bailouts (three bailouts involving the European Union and the International Monetary Fund have been arranged since 2010), has lost a quarter of its GDP with no realistic expectations of recovering it for decades to come, experiences unemployment levels which have oscillated between a high 27.8 percent (in July 2013) and a low 21.2 percent (in June 2017), and has seen the standard of living decline to 1960s levels.
Worse, Greece’s debt-to-GDP ratio has exploded since the start of the bailout programs, rising from 128 percent in 2010 to over 185 percent in 2017, and, with no debt relief in sight, the small Mediterranean nation has become truly a permanent debt colony inside the world’s richest region. In the meantime, a mass exodus of young and educated people has been in motion for several years now (youth unemployment rate in Greece stands currently at 43.3 percent), a process that is bound to have long-term effects on demographic trends and a significant impact on future economic developments.
Nonetheless, the storyline advanced these days from Athens, courtesy of a pseudo-leftist government…