Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/aoiusa/public_html/wp-content/plugins/sexybookmarks/public.php on line 388
Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/aoiusa/public_html/wp-content/plugins/sexybookmarks/public.php on line 394
Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/aoiusa/public_html/wp-content/plugins/sexybookmarks/public.php on line 400
AOL Daily Finance By Peter Cohan
On May 2, Greece announced a deal to get a bailout from the European Union and the International Monetary Fund. But as part of the agreement, Greece needs to cut government spending in ways that are causing social unrest. That chaos could get so bad that Greece might decide it’s better simply to forget about the bailout and “restructure” its debt.
Greece will make budget cuts ranging from $40 billion to $53 billion each year so that by 2014 its budget deficit falls from the current 13.6% to below 3% of GDP. And this will mean recession in Greece for years: A 4% GDP contraction in 2010, a 2.6% decline in 2011, followed by anemic 1.1% growth in 2012.
Continue reading