Comments:Eurozone offers Greece 30 billion euro in loans

I personally think that Greece should not take the loans. In order to get out of debt, one has to stop taking loans that have to be paid back in most cases. And 30 billion really isn't a lot if you think about it. Sure, it can buy a lot for the average person, but for governments it is a puny amount. In other words, there is no reason to accept the loan.


 * Yeah, this is funnier than fiction. The cure for a debt-stricken country? Why, more loans, of course! Melikamp (talk) 13:42, 12 April 2010 (UTC)

It depends on how you use the loan.

1. 'cashflow' problem - ie. car been written off, and you need a new one to get to work but insurers are dragging their heels. you take out a loan thats enough to hire a car for 1-2months. for employers its often to pay wages before customer pays large invoice.

2. 'investment' - you believe you can make $£€ from starting a sandwich shop on high street, but need a loan to buy/refurbish premises. over time you pay off loan and are still making money.

3. 'bailout' - actually a combination of both of the above, a company/country (bank/greece) has grossly overspent but would be profitable/stable if run differently. because they have overspent they have a cashflow problem, so another person with money (taxpayers!) invest in company/country as long as it changes its ways. over time loan is paid back and company/country is covering its costs. this practically never applies to an individual, they just get declared bankrupt/gets sequestrated.

The above are necessary evils. Ideally you sort things out before they become a problem. I personally keep 1-3 months wages in savings account to cover hard times.