This is what the CIA's factbook says: Greece has a capitalist economy with a public sector accounting for about 40% of GDP and with per capita GDP about two-thirds that of the leading euro-zone economies. Tourism provides 15% of GDP. Immigrants make up nearly one-fifth of the work force, mainly in agricultural and unskilled jobs. Greece is a major beneficiary of EU aid, equal to about 3.3% of annual GDP. The Greek economy grew by nearly 4% per year between 2003 and 2007, due partly to infrastructural spending related to the 2004 Athens Olympic Games, and in part to an increased availability of credit, which has sustained record levels of consumer spending. But the economy went into recession in 2009 as a result of the world financial crisis, tightening credit conditions, and Athens' failure to address a growing budget deficit. The economy contracted by 2% in 2009, 4% in 2010, and 5% in 2011. Greece violated the EU's Growth and Stability Pact budget deficit criterion of no more than 3% of GDP from 2001 to 2006, but finally met that criterion in 2007-08, before exceeding it again in 2009, with the deficit reaching 15% of GDP. Austerity measures reduced the deficit to 11% of GDP in 2010 and about 9% in 2011. Eroding public finances, inaccurate and misreported statistics, and consistent underperformance on reforms prompted major credit rating agencies in late 2009 to downgrade Greece's international debt rating, and has led the country into a financial crisis. Under intense pressure from the EU and international market participants, the government adopted a medium-term austerity program that includes cutting government spending, decreasing tax evasion, reworking the health-care and pension systems, and reforming the labor and product markets. Athens, however, faces long-term challenges to push through unpopular reforms in the face of widespread unrest from the country's powerful labor unions and the general public. In April 2010 a leading credit agency assigned Greek debt its lowest possible credit rating; in May 2010, the International Monetary Fund and Eurozone governments provided Greece emergency short- and medium-term loans worth $147 billion so that the country could make debt repayments to creditors. In exchange for the largest bailout ever assembled, the government announced combined spending cuts and tax increases totaling $40 billion over three years, on top of the tough austerity measures already taken. Greece, however, struggled to meet 2010 targets set by the EU and the IMF, especially after Eurostat - the EU's statistical office - revised upward Greece's deficit and debt numbers for 2009 and 2010. European leaders and the IMF agreed in October 2011 to provide Athens a second bailout package of $169 billion. The second deal however, calls for Greece's creditors to write down a significant portion of their Greek government bond holdings. In exchange for the second loan Greece has promised to introduce an additional $7.8 billion in austerity measures during 2013-15. However, these massive austerity cuts are lengthening Greece's economic recession and depressing tax revenues. Greece's lenders are calling on Athens to step up efforts to increase tax collection, privatize public enterprises, and rein in health spending, and are planning to give Greece more time to shore up its economy and finances. Many investors doubt that Greece can sustain fiscal efforts in the face of a bleak economic outlook, public discontent, and political instability. 

"They get hundreds of Billions in aid.. were does it go???"

It goes to uphold an economic structure that is already emptied of its content. It goes to pay interests to pay on debts contracted over the past decades, while the government is forced to cut jobs by the thousands; the already destitute are joined by a new wave of jobless people... so there is no end of the crisis in sight.

To understand what is happening in Greece and elsewhere, you can read and listen to this:

http://wallofcontroversy.wordpress.com/2011/09/20/david-graeber-on-debt-and-why-it-must-be-cancelled/

David Graeber is an American antroplogist teaching in England. He is also an Occupy Wall Street activist. His latest bool "Debt: the first 5000 years" shows that "debt contracted must be repaid" is not an economic concept, but a moral one. He demolishes Adam Smith' theory that says that first was barter, followed by the creation of money and then by lending. Graeber says it was exactly the other way around: first was lending - no need for money since books were kept meticulously about who owed what . He also says money was necessary to wage war and to conquer territories, since you could not keep books about transactions with ennemies.

But listen to what Graeber has to say, and maybe read his book, but it is a difficult one. His conclusion is that we might need to ask a few questions today, questions we thought did not make sense anymore ...

The money goes to Switzerland, England, Cyprus and other safe countries.

Very interesting link MJ, thank you for sharing!

firebomb it and start over!

men leave it.....he writes 120 message per minute and most of the times is just nonsense. i understand being polemic but he'sover the edge....whenever he pos up the treads get flooded by messages....dunno if is worth to answer....

Hi Shane231 and how is your day?

To the general public:  ...  I have no respect for the Greek electorate,..,  or for anyone else claiming no agency like the Argentinians who managed to default twice in 20 years.  These kind of ppls are morrally corrupt, wich leads to the situation they are in.

Little entitlement kids who stamp their feet if they cannot retire at 42. Or get bonusses just to come into work on time. Whats this?

Thanks for your 2ct worth Gennaro S,.., we all know only liberals can write sensible things.

Almost half the greek working population works for the government (with all of the huge benefits to boot),...., how is that in any way sustainable?

Lets not re-visit Israel, that doesnt belong in this thread, please show some discipline when discussing topics.

I will entertain the notion that here and there one would find a citizen from a PIGS country some more spine,..., instead of the rest of the population who have either sold out for free handouts (high salaries, and government largess) they didnt work for and blaming the Germans for their debt addiction. I judge (at least democracies) peoples on the basis on who they vote for. and no please dont bring.

I mean, dont spende MORE then you earn....which fool made that idiot rule?

I wanted to say ".. I judge (at least democracies) peoples on the basis on who they vote for. and no please dont bring the elected HAMAS into this.."

Occasioned by developments in Greece over the past decade, these books offer background and explanations, none quite satisfactory. The first, a neo-Marxist analysis, considers Greece (like the other authoritarian regimes in southern Europe) a victim of imperialist dependence. The second sees foreign interference as a persistent feature of Greek political life since the early 19th century. The third book, by a Greek journalist educated in this country, absolves the United States and blames the Greek "problem" on native politics and corrupt politicians.

Thats a bit hypocritical,.., I was referring to HAMAS as you were the one sidestepping into Isreal and moral values of supporting it.

Short term memory problem I imagine.

You obviously take great delight in using the PIGS acronym and have blanket insulted the vast majority of the populations of 4 countries

Well, thats a stretch, but since you brought it up,..,pigs are smart animals,.., so the pigs are the ones being insulted in this regard.

What nationality are you by the way and do you have any particular qualification to make the crtique that you do, or are you, dare I say, simply bigoted?

Typical liberal or neocon thinking,.., contrary to you , I am an iconoclast,.., so no flagwrapping on my side, Anyway can we make  this about  the Greeks instead ad homs (bigot) about me? Its tiresome.

..think ballot paper with no clear candidate anti (whatever)..

So greece is not a democracy or their system is a facade....riiiiiiiiiiiight!!!

Like I said, first kneejurk is to take away "agency" from a people, as if they were retarded kids with no choice in the way of shaping their own future.

PIGS (and PIIGS) have been tossed around in the media for years.  Just because FT banned the acronym doesn't automatically make it a perjorative term.

And yes, it's quite a stretch to believe that it insults the vast majority of the populations.  I'll put my money on the vast majority never having heard of the term and not giving a flying f**k at a rolling donut about it. They have bigger fish to fry these days.

I didnt bring up the PIG (animal) angle shauN123, you did.

@richard

Most people have heard the definition by now.

Actually only an idiot would be insulted by the epithome PIG. This are kindergarten things and we are way over it....besides you have to look who is calling the name, not the name itself, and people who are so fond of using that acronym are usually, in fact quite useless. so why care?

I'm still seeing the term in investor newsletters coming from the US.  Barry Rithholz and John Mauldin are still using it, I'm sure.

STUPID financial crisis!  I love it!

Watch it Richard, accourding to Shaun you are insulting 6 nations now,...,

Make it 7.  I bash the US on a regular basis.

the USA, thats a class in itself....