ATHENS – Shock was a common sentiment in the heart of Athens this week. 

Athinas Street, the colorful shopping mile in the Greek capital, is known for its lively fish and meat markets, where spice salesmen mix with traditional shoemakers and sidewalks are packed with commodities for sale. 

But at one corner earlier this week shoppers and residents stopped to look at the ugly face of growing public anger in the Greek crisis.

Workers were removing broken glass, burnt wood and other rubble from the Bank of Cyprus building, one of at least 48 Athens buildings that were torched by protesters during riots two days earlier.

Two blocks up the road, 50-year-old Michael Ipermahos stood outside his small clothing store and looked on in despair.

"Once, we were proud to be Greeks. Now, I am ashamed. Ashamed not of myself, but of the Greek politicians and what they have done to this country," he said.

'Work, work, work'
Ipermahos said he has been to several of the public demonstrations outside of the Greek parliament in the past months to peacefully protest the harsh austerity measures and to voice his anger over what he calls "injustice.“

"I work, work, work, day and night, 16 hours every day, sometimes in temperatures below freezing, sometimes in brutal heat," said Ipermahos, a father of two children – ages 20 and 23 – who still live at home with him and his wife.

"We are not lazy," he said. "But while my income is shrinking, the taxes are going up, fuel prices are skyrocketing and even basic food is becoming more expensive."

On this cool morning, only a few people stopped to look at the tee-shirts, jackets and other garments that Ipermahos sells.

But he does have one item that sells briskly.

"Gas masks," Ipermahos said, as he pointed to the prominently displayed protection gear.

"Because tear gas is regularly used at the protests, we now also offer gas masks. It is one of our best selling products," he said.

But it may not be enough, over the course of the past two and a half years, Ipermahos said the little shop that he owns with his brother-in-law has seen a 60 percent decline in business.

Courtesy Chris Manolitsis

Chris Manolitsis, a 52-year-old freelance sound engineer, is feeling the crunch of the Greek economic crisis.

And, hope for a better future is fading.                                                             

"It is almost certain that we will lose our jobs; we are only counting the days,“ he said. 

Armed robbers steal 70 relics from museum in Olympia, Greece

Tightening the belt
Of course, it’s not just retail businesses that are feeling the crunch in Greece.

Chris Manolitsis, a 52-year-old freelance sound engineer who has been working with Greek artists for over 30 years, said he had been struggling ever since the 2008 collapse of Lehman Brothers in New York.

"The Greek music industry has generally deteriorated because people do not have the money to go out to nightclubs or events anymore, one of the first things everybody saves on is entertainment," he explained.

In recent years, the father of two grown-up children had to cope with a 50 to 60 percent reduction in his income, though he still feels somewhat financially independent because he has been receiving money from other sources, including rent from a house that he bought in better economic times.

However, his alternative income sources are far from secure.

"The woman who is renting my house is a civil servant who had her salary already cut three times and she is now facing a fourth cut," Manolitsis said. "I agreed to reduce her rent by 20 percent, otherwise the mother of a young child would have moved out and I would have been left with more uncertainty.“

And his 27-year-old son Terry, who finished college with a degree in media and communications, was recently fired from a job as a security guard, the only employment he could find after finishing his studies. As a result, the young man left for Scotland, looking for job opportunities outside Greece.

In Greece, the crisis is making people ill (literally)

Broken promises
Manolitsis blames the current financial crisis on two decades of financial mismanagement, which has resulted in broad public anger and deeply rooted mistrust towards politicians.

"Greeks had the wool pulled over their eyes, so to speak,"  he said.

"When former Prime Minister Papandreou won the elections in 2009, for example, he received overwhelming support on a platform that there is plenty of money," he said. "Two days later, the politicians said sorry, we made a mistake, there is no money.“

Today, most Greeks feel that they have been pushed to the limits, leading to growing despair and rising suicide rates.

"The situation is a tragedy and a shame for a nation with such a powerful heritage," Manolitsis said. "Of course I am worried about my future, but we have to keep going and I am not afraid to get my hands dirty or explore new routes."

Next week, the Greek sound engineer has signed up for a training seminar, which will teach him how to sell insurance.

Reporter's Notebook  
 
ATHENS – When you touch down in Athens, the signs of an economic slump are immediately evident. The arrivals hall in the domestic terminal is almost deserted, with flights within Greece having been cut back by about 25 percent. Outside the taxi pick-up point stretches a long line of yellow cabs going nowhere. It is symbolic of Greece's economy – stretched and stuck.

On the ride into town the driver explains that he's been waiting for me for seven hours. I was his second and last fare of the day.

Greece still holds the magic of an ancient Mediterranean country. The Acropolis, its columns lit majestically at night, juts grandly above Athens. It is a testament to one of the world's great civilizations.

But down here on the street, there is fear that Greece is unraveling as a modern state.

‘Economic death spiral’
You don't expect to see so many hungry people in a major European city. They line up each day looking for a handout in the soup kitchens and bread lines run by the municipality. But the 40 workers under contract to prepare a basic lunch of pasta and bread say they will lose their jobs in June because the city has run out of money to pay them.

A shoe shine man sits in front of a closed shop in central Athens Wednesday.

Essentially, the country is broke. And to borrow enough money to stay solvent, the Greek government has agreed to severe austerity measures imposed by the European Union, European Central Bank and the International Monetary Fund. The money will run out next month unless another chunk of the bailout is handed over. But the European Union wants even more cuts in government job, salaries and benefits.

Public employees have already taken a 40 percent pay cut and pensions are being reduced. The private sector has also been hit and unemployment is nearing 20 percent. A staggering 40 percent of youths between the ages of 18 and 24 are without jobs.

Take, for instance, Leo, a 64-year-old painter of religious icons for devout Greeks and tourists. His business dried up. The money ran out and he ended up living on the street. Evicted for not paying rent, Leo, who didn’t give his last name, took warm clothes, books and ten boiled eggs to his new home – a metal bench near a park in central Athens. He spent 45 days in the open with what he called the “unhappy homeless.” 

What makes Leo unhappy is the realization that the government is to blame. "They borrowed," he said. "Every time they needed money they borrowed and then borrowed some more."

Successive Greek governments borrowed an estimated $498 billion, in essence to bribe the Greek people into being happy. Governments who could offer cushy office jobs, fat pensions and long vacations got re-elected. It made perfect political sense, but it was economic suicide.

A businessman in the aviation industry described the country, "as gripped in an economic death spiral."

Enough to make you sick
Yiannis Varoufakis, a professor of economics at Athens University was just as blunt when he told me, “This is Greece's Great Depression. If you look at the statistics it is indeed a deeper slump than what Greece went through in the 1930s.”

John Kolesidis / Reuters

A man reads a newspaper in an empty souvenir shop in the Monastiraki tourist area in Athens on Wednesday.

Imagine for a moment taking a 40 percent pay cut. Then suffer an increase in sales tax to 23 percent. Add on increased rates for electricity, a new tax on heating oil and the cost of a gallon of gas hitting almost $10. Oh and your pension is not secure, and your kids stay home because there aren't enough teachers. It is enough to make you sick.
 
And that's precisely what the Greeks are doing. Getting ill. Hospital admissions are up 25 percent. At the same time hospital budgets have been cut 40 percent so there are shortages of medicine and staff.

Nikitas Kanekis is the director of Doctors of the World, a charity that runs health clinics. He has the genteel manner necessary to be a pediatric dentist, but the economic decline has unsettled him. "We have seen four times the number of Greek patients over the last year,” he said. “We are afraid the humanitarian crisis can develop into a humanitarian catastrophe."

It may already be happening. The department of health reports that suicides are up 40 percent. And violent crimes including murder are up almost 100 percent.  “We have all the characteristics we see in big cities in the Third World,” said  Kanekis. “People with no shelter, starving people and people looking for doctors and medicine."

Fears about what may come next
Greek coalition leaders are meeting Wednesday to prepare their response to a draft deal on steep cutbacks demanded by creditors in return for a $170 billion bailout that could protect the country from looming bankruptcy.

They need the money to stave off crunch time on March 20 when a big bond redemption payment is due. Without the bailout, they risk a default that could send shockwaves throughout financial markets and the global economy.

No one is certain it will happen. To receive the previous handout, Greece promised to cut 30,000 public-sector workers, but only 1,000 have been let go. The government also promised to sell off 65 billion euros in state owned assets. So far only 2 billion have been sold.

The government is trying to raise money through increased taxation. There's a new property tax that is collected through the state-owned electric company. If you don't pay the tax your electricity is cut off. There's a luxury tax to hit the wealthy – a 30 percent tax on sports cars and yachts. There's even a tax on private swimming pools. The government is reportedly using Google earth to pinpoint pools even as some Greeks are said to be using camouflage nets to hide them.

Even the Greek Orthodox Archbishop Hieronymos II of Athens and All Greece, who rarely comments on issues not related to the church, is worried.  “The unprecedented tolerance of the Greek people is being exhausted, rage pushes fear aside and the danger of social upheaval cannot be ignored anymore,” he warned in a letter sent to interim Greek prime minister.   

The origin of the words tragedy and economy are Greek. In this crisis, they are too close to home.

By NBC News’ Claudio Lavanga  
The start of the debate in the Italian Senate over Berlusconi’s new austerity budget on Wednesday was always meant to be a predictable affair. In fact, it barely made the news – even in Italy. 

The $65 billion plan, scrapped together by a struggling Italian government in a desperate bid to balance the budget by 2013, is pivotal to the very future and stability not only of Italy but of Europe as a whole. The mix of tax increases and spending cuts was announced last week to satisfy the European Central Bank’s demands that Italy do something to correct it’s strained public finances.

So Italians are asking, why did only 11 out of 315 senators show up to discuss the measure on Wednesday evening? And why do just 0.016 percent of the proposed budget cuts apply to the political class itself?  
 
Attendance was not mandatory, but the en-masse absenteeism is viewed as a direct insult to the Italians who will bear the brunt of the new austerity measures forced upon them by the very politicians who dared not to show up to discuss the measures.

(You don't have to understand Italian to get this fun tour of the empty Senate the day before the debate from Corriere della Sera. "Tutto chiuso" says it all).

The empty senate chamber could be seen as a symbol of what’s wrong with the country, and cast some serious doubts over its chances of finding a political solution to an economic crisis that is threatening the existence of the euro and the stability of stock markets worldwide.

Summer time truancy
So what happened to the remaining 300-odd senators missing in action?

It is reasonable to suspect that most of them are still on vacation. It is the middle of August, a time when most of the country hits the beach; parliament, among other institutions, closes down for the summer.

There are surely plenty of excuses that might be offered up when the absent politicians roll back to town. Some might claim to have been on holiday at the Seychelles, and were so terrified by the shark that killed the honeymooner they could barely move. Others could claim to have taken an academic break in London, and to have fallen victim of the rioters who stole their plane ticket. A few could get away with one of the summer truancy classics: a bad sunburn, a nasty stingray sting, a water skiing accident.

Even though Wednesday was just the start of the debate over the plan and the vote will come later, very few, if any, will admit that they simply couldn’t be bothered to leave the beach even for a day to perform their duty in one of the most difficult economic times the country is facing since the Second World War.     

(Here is more video of the empty chamber "un Senato deserto").

Highest paid politicians in Europe
This attitude is symbolic of a privileged political class that has lost touch with its electorate and spends most of its time enjoying the benefit of being an Italian politician, without acting like one.

The numbers speak for themselves: At $20,000 per month, Italian members of parliament are the highest paid in Europe.

They earn twice as much as German politicians, to choose just one nearby country. In addition, they enjoy a long list of benefits from free, unlimited flights in business class within Italy to the use of state cars to a fine restaurant in the house of parliament that serves succulent beef steak for a mere 2 euros.  

The overall Italian political system, including parliamentarians salaries, benefits and expenses, costs $33 billion a year, according to the country’s main financial paper Il Sole 24 Ore.
 
The cost to the country, if politicians continue to act as spoilt and pampered upper-class with no sense of responsibility, could be much, much higher.