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Fábio Nunes

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What do you think about the countries that are being helped by IMF? Do they deserve the money or not?

Hi Ted fellows. I'm portuguese, and my country is currently being (for the 3rd time in 40 years) "helped" by IMF and ECB (european central bank). Many countries, such as Germany and other northern europe countries think that these countries don't deserve the money they receive.

What do you think? Do you think this aid is essential in an organization that is called a UNION (european union) or rich countries shouldn't keep on helping what they say are lazy countries.

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  • Aug 31 2012: I am from Austria, a rich country.

    While I think we should aid poorer countries in the EU, I don't necessarily think they deserve it (it would be an incentive for bad economics and careless spending) and the EURO (not the EU) as it is now, has failed, it is just not possible for poorer countries like Greece or Portugal to compete with economic superpowers like Germany whitin the same currency, but we, as a union, made this mistake and we, as a union, have to correct it and learn from it.
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      Aug 31 2012: It's hard acting like a Union when Germany is clearly the 'big boss' of this union. I don't know if you have that idea, but there are a lot of conflicts between Durao Barroso, president of EC (european comission) and Merkel because he doens't like Germany's attitude towards the southern countries.

      Euro bonds would be a great way of solving this crisis as a Union, but Germany refuses it. But also, Germany makes a lot of money from this crisis: 60 thousand millions (or billions as americans say) euros have been made by germany from selling money at high interest rates and buying at negative (yes, negative!) interest rates.
      • Sep 3 2012: Can you blame Merkel?

        In all honesty, northern countries have strict rules regarding finance, they built up a lasting infrastructure, great industries and so on.

        Why didn't the southern countries?

        They never bothered.

        Instead, they went looking for the big money, like Spain and the housing bubble. I recently read an article which stated that over 2 million appartments in Spain are uninhabited and empty, hundred thousands more weren't even finished.

        They couldn't be sold because the market was flooded with new appartments, plus, they are high-end appartments, with swimming pools, golf courses, etc.

        And it read furthermore, that Spain, by the end of 2012, willl have built an additional 300.000 appartments.

        Why aren't the politicians putting an end to it?

        Either they don't want to or, which would be worse, they are getting paid not to do so.

        Show the EU you can and will get your stuff sorted out, make rules, enforce them, then you'll get money. The EU won't spend 500billion with no avail. We will have the same problems in 10 years if there aren't any rule and law changes.

        If your kid doesn't eat the vegetables, you don't give him cake and candy and tell him, okay, but tomorrow you are going to eat your vegetables.

        Same with the money.

        And EURO-Bonds would do nothing but drag down good economics.
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          Sep 3 2012: Actually, the houses in Spain are empty, because there isn't money to buy them - there is a 20%+ unemployment rate and banks aren't lending money as they used to. The problem isn't too much houses... the problem is not enough money.
          Euro-bonds would be good as a short term solution, as they could prevent some countries who are paying a lot in interest rates from getting into default, which is definitely worse on the economy.

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