IMF Bailout
 

Anybody got any opinions as to how the current economic situation will affect PT in the near future?

Re: IMF Bailout
 

Portugal has no chance of even beginning to pay back its debts. It will restructure its debt several times and ultimately default. It will be eventually kicked out of the Euro along with Greece. During all this time Portugal will stay in the state of permanent recession.

Re: IMF Bailout
 

But wouldn't that also put Ireland in the same boat?

It's difficult reading the boards trying to get a true state of play. I would think a goodly proportion of people seem to be either retired (early or otherwise) or have well paid jobs. Whether these jobs are transfers from the UK I'm not quite sure. Either way, the majority for whatever reason seem to have a comfortable financial cushion. It's really difficult to judge though - because then we hear a lot in the press about people returning from abroad (not just PT) due to the exchange rates etc, but then again that would indicated that earnings (from whatever source) were not being paid in Euro.

To be honest, I would have thought that Europe would be very, very, reluctant to kick anybody out of the Euro - it would really undermine what it stands for (and an awful lot of people rely on its continued existence to remain in their cushy over-paid non-jobs)

Re: IMF Bailout
 

Europe is running out of money just like Greece, Ireland and Portugal have done. It doesn't depend on what they want. They don't have the money to do what they want.

Re: IMF Bailout
 

After reading what happened in The Republic of Ireland it looks as if it will have a big impact on those who either live in PT or have some vacation property in the country. I guess it is a waiting game at the moment.

Re: IMF Bailout
 

The PT government has no interest in the development of small to medium sized businesses. Until they realise that this is the way forward, there is no hope for the country.

Re: IMF Bailout
 

The people seem to have their heads in the sand, pretending it's not serious. There are lots of posters up at the moment objecting to the IMF (it's FMI in portugese) like they are the cause of Portugal's problem.

http://1.bp.blogspot.com/_7u4lbgaLxk...s400/fmi_3.jpg

Re: IMF Bailout
 

TIA - this is Africa...

Re: IMF Bailout
 

The new govt in Ireland is already talking about restructuring its debt repayments, which isn't helping 'confidence.'

Re: IMF Bailout
 

The educated professional classes in Portugal....recognise, that they are little more, than an African state.

For us foreigners, we know, deep down....cheap place to live.

Don't need to say any more.

Horrors......if they had the courage, they'd take up arms....

Sad bunch of of in-breeding.....sad, horrors.

Sunshine....is nothing to do with them. Simply, if there was a local nation ready to take them over....but as history recalls, there isn't.

x

Re: IMF Bailout
 

Some are even calling the Finns and German fascists for not being too enthusiastic about bailing Portugal out. Makes you wonder whether the country deserves to be bailed out in the first place.

Re: IMF Bailout
 

What do you think is the one major point that led Portugal to requiring the bailout in the first place?

Re: IMF Bailout
 

Overspending - as simple as that. A childlike inability to say no to projects and save money.

Somthing that bugs me is the waste of money in Portugal, the projects seem to be pointless in many cases. A couple of examples close to Tavira:

A stretch of quiet coast near Tavira called Pinheiro where street lights have been installed. There are almost no houses, after dark about a car an hour uses the road but for about 2 miles now there are nice new street lights.

In Tavira town several buildings, very nice ones, have been rebuilt but are now left totaly empty. Without regular care they will need rebuilding again in a few years.

There seems to be a 'spend it quick' attitude to government money, it may be something to do with EU funding?

Re: IMF Bailout
 

You make a relevant point when it comes to pulling down EU funding, but I can't see it's any different in the UK. Not that the UK is going to find the sailing any sweeter, but it has the option to print its own money at the minute.

It's just that with Ireland (and the UK) you could practically watch the train wreck happening. Silly lending, property prices rises that were completely unsustainable. Self denial on a massive scale.
I know nothing about Portugal, but I don't get the feeling (by browsing websites) that this was the problem. Not to the same degree as the UK for instance.

I mean, I can understand Germany being a bit put out because they weren't reckless. Credit is something that is frowned upon, house prices remained affordable, hence, when the cookie starts to crumble their own mess isn't quite as big.

Re: IMF Bailout
 

Don't forget the German's were very happy to continue to provide the Irish banks with funds, which they subsequently lend on irresponsibly, fuelling the property boom. Their banks made healthly profits and this translates in to wages, bonuses and dividends for shareholders - which can be spent buying german more goods.

But they don't like helping with bailouts. Why? Because there is nothing for them to gain financially from a bailout.

For a country to be economically viable they need manufacturing jobs creating good quality products which are sought after. The UK, Ireland, Portugal & Spain were too dependant on property and tourism (inc the service sector) and now we all pay the price.