More Time for Greece to Meet Budget-Cutting Goals?

By: Ian Campbell | Fri, Oct 12, 2012
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Following release of its updated economic outlook earlier this week, International Monetary Fund (IMF) Managing Director Christine Lagarde today reiterated statements made yesterday that Greece should be given more time to meet its budget-cutting goals. The German Finance Minister today expressed concern that to do such a thing would weaken credibility - also read 'possibly create bad precedent.

Ms. Lagarde's continuing commentary is reported to come on the heels of the IMF having now concluded that "aggressive fiscal consolidation crimps growth more sharply than previously thought". Whatever 'previously thought' means, it hardly seems rocket science to conclude without much pencil-pushing that assuming all other things equal austerity measures will curb what otherwise would be GDP growth.

As you consider the financial markets generally, and your own trades and investments specifically, you might want to read Growth Warning: Top German Economists Say Greece Is Lost. That article reports that yesterday (Thursday) several "top" German economic institutes warned that:

I believe that in the end Germany will:

Topical Reference: Germany holds firm on Greece as IMF pressure mounts, from Reuters, Emily Kaiser, October 12, 2012 - reading time 2 minutes. Also see Growth Warning: Top German Economists Say Greece Is Lost, from Spiegel Online, October 12, 2012 - reading time 3 minutes.



Ian Campbell

Author: Ian Campbell

Ian R. Campbell, FCA, FCBV
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Through the Economic Straight Talk Newsletter Ian R. Campbell shares his perspective on the world economy, the financial markets, and natural resources. A recognized business valuation authority, he founded Toronto based Campbell Valuation Partners (1976), Stock Research Portal (2007) a source of resource companies market data and analytic tools, and Economic Straight Talk (2012). The CICBV* annually funds business valuation research in his name**. Contact him at
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