Jason Knapp
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Jason Knapp in Special Situation Investing News,

Greece is doomed. Avoid investing there

It's funny that Greek bonds and stocks were a trendy bet for hedge funds in 2014. So much for that trade. I personally think that an exit from the Euro is inevitable for Greece.  Super investors like George Soros, who is world renowned for making big money treading currencies,

Soros Says Greece Now Lose-Lose Game After Being Mishandled


And the world traveler Jim Rogers agree.

"Greece Can Never Pay Its Debt" - Jim Rovers


To me the whole Greece situation is really very simple.  You can't not pay taxes...

"At the end of 2014, Greeks owed their government about €76 billion ($86 billion) in unpaid taxes accrued over decades, though mostly since 2009. The government says most of that has been lost to insolvency and only €9 billion can be recovered.

Billions more in taxes are owed on never-reported revenue from Greece’s vast underground economy, which was estimated before the crisis to equal more than a quarter of the country’s gross domestic product."

Greece Struggles to Get Citizens to Pay Their Taxes


and retire early on a public pension...

"almost 75% of Greek pensioners are trying to secure their early retirement through legal provisions that allow them to stop working before the age of 61.

“In the public sector, 7.91% of pensioners retire between the ages of 26 and 50, 23.64% between 51 and 55, and 43.53% between 56 and 61. In IKA, 4.44% of pensioners retire between the ages of 26 and 50, 12.83% retire between 51 and 55, and 58.61% retire between 56 and 61. "

75% of Greek Pensioners Enjoy Early Retirement


and expect there to not be a problem.

I believe that it is only a matter of time before Greece is kicked out of the Euro and reintroduces the Drachma.

The only saving grace for Greece is the fact that its dragging down of the value of the Euro has been a huge windfall for exporters like Germany.  If I was a German politician, I'd see how long we could kick the Greek can down the road and continue to enjoy the benefits that the cheap Euro has provided to the country's export economy.  Ultimately though there is no fixing what ails Greece.  There's just too much debt and too little revenue coming in.  Greece is a beautiful country with wonderful people and wonderful food, but I would not want to invest there.