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new cuts policies in spain to avoid the bailout but is likely to be one. In madrid there have been protests against the cuts and the separatist groups in Catalonia are getting more powerful

In our last few classes we have focused on Jamaica and how its relationship with the IMF has greatly impacted Jamaica's economy. As we all know, Greece is in desperate need of economic help, which is why finance officials from all over the world have come together to decide on how to rescue Greece. But that is easier said than done. This article mostly explains that the IMF wants to change their original agreement with Greece, but Germany, the biggest contributor to the European Stability Mechanism (ESM) wants to keep the original policy.

I think it is interesting how the IMF's stance has varied between Jamaica and Greece. From what I understood from the movie, the IMF did not give Jamaica the time of day when it asked for a modification on its loan to make their economy improved and sustainable- their interest seemed more in making it a reliable market place for foreign exports. Greece, on the other hand, has exports that other rich consumer countries want (shoes, oil, and cars come to mind), so it gets greater consideration from the IMF. Since these consumer countries represent a significant portion of the voting power within the IMF, the interests of the IMF and of Germany are understandibly different: Germany wants its money back, and the other countries want Greece to reestablish a functioning economy so they can et their goodies. Side note: Germany has 6% of the voting power in the IMF, and the US has close to 17%, http://www.imf.org/external/np/sec/memdir/members.aspx

Great find, Michelle! So relevant to our Jamaica discussion.

China's stock market bailout was a significant setback to its decades-long efforts to build a modern financial system. Its currency devaluation shocked global investors and altered the policy calculus at central banks. Statistics coming from within China seem to contradict each other, calling into question the legitimacy of such statistics.

Greece has been making structural reforms to try to address their debt, but Europe is also making them impose high taxes and cut social spending which is not helping to ease the problems. Hopefully, Greece will move towards liberalization of labor markets, cost-efficient public services, and more uniform taxes.

The Greek economic crisis is so difficult to overcome because of the Greek business habits of short hours and a culture of not paying taxes. To pay for these bailouts, the contemporary Greek culture must be revised, something that is incredibly difficult. Though the Greeks have agreed to higher taxes, it certainly does not mean that the majority of the people has changed. The strain that the Greeks are putting on Europe and the strain that Europe is putting on Greece hopefully will not produce cracks.