The Social Depression Within Europe’s Recession
by Tyler Durden
When people become desperate or hope-less, two things tend to coalesce; 1) they become easily led by charismatic leaders (no matter how crazy the ideas would appear previously), and 2) they resort to actions deemed previously un-possible. Putting a roof over your family’s head, feeding your kids (or yourself), or buying the next iPad can drive people to these acts of desperation. Greece’s homelessness rate has risen 25% since 2009 (with 20,000 living on the streets of Athens) and over 30% are at risk of poverty (with Ireland close behind). Suicide rates had risen by 40% in the first half of 2010 (and Greece was still relatively low). HIV infections from injecting drug-users has surged 20-fold in two years! And while crime rates remain among the lowest in Western Europe, robberies have surged since 2005 and prison populations (per capita) are on the rise – though, thankfully not as bad as in the US (yet). With sovereign bond spreads at multi-month lows, stocks at multi-month highs, and Barroso et al. claiming victory at every opportunity, perhaps some internal (Farage-like) reflection on the social depression they have enabled is required as the Bank of Greece warned the nation’s social cohesion is under threat.