Confusing Language??
This story in the Financial Post is not talking about hairstylists in the nation of Greece, it is referring to the fact that people who loaned Greece money they thought would be repaid will likely be getting about 30 cents back for every dollar they loaned them.
The new bond will likely be for 30 years with no repayments for 10 years, which really means you still might be lucky to ever see a real penny repaid.
So what is the lesson from all this?? In my humble, untrained opinion, the world financiers and economists are just making this stuff (insert expletive) as they go along. When you or I can borrow mortgage money at 2.99% and countries in Europe are paying 6% and far more, something is seriously wrong.
This is an example of what happens when you spend more than you earn, and just keep wracking up the debt. While we are not as messed up as Greece, as a nation we are seriously in the hole, and this idea that as long as you can afford the payments, without paying down the principle will ensure that we are always a nation of slaves to whomever we owe the money.
It is also an example of what happens when far too many people work for the government and far too few people have to pay their wages. Canada, should be paying attention to this lesson as we become less and less a nation of bosses and workers and more and more a nation of taxpayers and tax harvesters.
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