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# Greece Is Now Bankrupt: Germany Faces Impossible Choice
- URL: https://ivn.us/greece-is-now-bankrupt-germany-faces-impossible-choice/
- Published: 2012-08-16T05:50:07.000Z
- Updated: 2026-06-22T19:30:10.000Z
- Author: Bob Morris
- Tags: News

Greece has just put a [spending moratorium in place](http://ekathimerini.com/4dcgi/%5Fw%5Farticles%5Fwsite2%5F20112%5F14/08/2012%5F456948?ref=ivn.us) and will now spend only for salaries and pensions, freezing payments for everything else, which presumably includes vendors and debt payments.

They will increase spending only when the next bailout money arrives, and that may be never.

> [OK chancellor, pick your poison](http://globaleconomicanalysis.blogspot.com/2012/08/face-to-face-showdown-with-merkel.html??ref=ivn.us)

Much of the problem with the Euro crisis is the big financial institution's insistence on not taking write-downs on the bonds they bought and "investments" they made which they knew were dicey at best. Thus the governments loan money to failing institutions who promptly uses it to take back debt - but they've taken on more debt to do it. So the cycle continues.