Nearly four years after Greece set off the European debt crisis, the Hellenic Republic is being allowed to borrow from global bond markets again with a...

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Nearly four years after Greece set off the European debt crisis, the Hellenic Republic is being allowed to borrow from global bond markets again with a projected €2 billion debt offering. This makes no sense as Greece's debt load has gotten much worse over, not better. Greece's debt-to-GDP ratio in 2010 was an impossible to manage 148%. Last year it was an even more impossible 174%. The debt-to-GDP ratio is the gold standard of debt metrics, because it tells you whether the economy is productive enough to generate the money needed to pay its debts. Since 2008 nearly 25% of the Greek economy has been destroyed - making it even harder to repay debts. Try explaining any of this to the bond market where Greek bonds have been some of the hottest investments around. It begs the question: Why would investors lend any money to Greece? (VIEW LINK)


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