How Hellenic Greece is now reduced to Tiny Greece !!!

How Hellenic Greece is now reduced to Tiny Greece !!!

The Breaking news through a hysterical sounding anchor on the likely debt default by Greece dumbfounded me. The ranting voice of commentator led me to believe perhaps even bigger worry than US 2008 sub prime is waiting to be delivered before the world and investor community.   

Sub prime crisis of 2008 was great disappointment that led to temporary evaporation of huge wealth across the globe including mine a small investor; however Business and capital market returned to track in just few years. It was a gift of wisdom, which I carried through with Systematic investment leading to a more and higher valuation in next few years. What now, despite my pleasant rescue from 2008 crisis, I was shaken and worriedly took shelter in my contemplative best. 

The Greece decline was a gradual and known to world community. It was one among few disastrous and indisciplined economy from PIIGS nation (Portugal, Ireland, Italy, Greece and Spain) who borrowed heavily and disproportionately but spent them recklessly on wasteful priority, instead of transforming those borrowings in a meaningful productive capital asset. Such expenditure is usually termed as revenue expenditure. The profligate financial mismanagement converted the outstanding borrowings into huge mountain of debts. The interest liability on this accumulated debt is today higher than the revenue that these country and Greece specially can generate within the country.  The lender to Greece is World bank, IMF, ECB and countries like Germany. The Greece refusal to service their sovereign debt shall certainly be a colossal loss to their International commitment and financial propriety.

However given the scale and Business isolation Greece had with India and with rest of the world, it is far less worrying. Our material engagement and Business joints are limited and few. Even financial engagement is too modest to be mentioned. Greece was never a nerve point of capital movement for the rest of the world ever. I was sensing more of a ripple effect and a temporary effect on us. And the relieving fact, the surface ripple in ocean never turns to Tsunami.

But the appalling fact, the Great country of Alexander has been certainly reduced to a Tiny Greece.