I know I said I would stop publishing on InvestorGeeks. However, I saw something that I would like people to comment on. Because I think it is very important, I would like as many people as possible to comment to say whether I am right or wrong. If I am wrong I will delete this post…
I have a habit of looking at the budgets of countries to understand whether or not the country is doing its thing properly.
Well I just looked at the Greek budget and what I saw scared the holy crap out of me. And anybody who buys Greek bonds is asking to have their money taken away from them. I say you buying a Greek bond is FOOL!
Take a look at the following link:
Then look at page 19:
I see Tax Revenues of 91 billion, with a grand total of about 102 billion. What scares the crap out of me are the borrowing lines; 38 billion and 6 billion. In other words 44 billion of the revenue is from borrowing money. If somebody wants to say I am reading this wrong, PLEASE TELL ME. But as I read this it means 44 billion of the 102 billion revenue is money that needs to be paid back eventually. In other words Greece is borrowing 40% of budget!
I say WTF!
For comparison look at the Canadian 2009 budget. The Canadian budget has a maximum borrowing of around 10%. That is ok, and sustainable.