Procerity

Debt markets have lately been unkind to European Union members who have racked up high debts and who are now experiencing slow economic growth. EU finance ministers met today to formulate a way to contain the Greek financial crisis, and halt it from spreading to Portugal, Ireland, and Spain. The Swedish Finance Minister, Anders Borgy, has labeled those who are betting against the success by EU policymakers a “wolfpack”, intent on tearing apart the weaker members of the EU.

To support their common currency, European Union members have so far pledged, along with the IMF, about 110 billion euros to bail out Greece. With a population of 11 million, that works out to 10,000 euros for every man, woman, and child in the country - not a trifling sum, considering that Greece’s per capita income is only 25,000 euros per year. The aid package is designed to take pressure off a national debt that is expected to balloon from 113% of GDP in 2009 to 127% of GDP by 2011. The hesitation of other EU members, especially Germany, to finance the Greek debt has only exacerbated the problem and make an eventual default all the more likely.

While politicians ponder, predators prey. My betting is on the wolves.