4 ms·

What I don't understand about reactions to Greece's profligate borrowing is that I rarely see criticisms of the lender. Borrowing is a 2 party interaction and

What I don't understand about reactions to Greece's profligate borrowing is that I rarely see criticisms of the lender. Borrowing is a 2 party interaction and both parties bear responsibility. The so called bailouts of Greece have been nothing more than bailouts of German and French banks. All the while putting the suffering on Greeks and not anyone else. The best option for Greece would have been to leave the EU in 2008.

golemotron 10y ago
I'm not sure why Merkel is still in office. She's been behind most of that policy, along with the current immigration crisis, and the policies that Brexit was a rebellion against. Ostensibly, Germany is a democracy, but she's had the chancellorship for 10 years and she uses her position to be the EU's de facto leader. There don't appear to be term limits.
- georgeecollins 10y ago
  I think because the flaws with the Euro that have been very disadvantageous for Greece are for the same reason very advantageous for Germany. Germany gets to have a big account surplus with a relatively devalued currency. She may be doing the wrong thing for EU, but the right thing for Germany. In the long run perhaps the right thing for EU is the right thing for Germany, but I don't think German voters see it that way right now.
- detaro 10y ago
  She is still in office because she hasn't done that many unpopular things, especially in her first 2 terms. If anything, she is as seen as to inactive, but as long as the status quo wasn't too bad... And internally, many see her having a lot of influence on the EU as good. The general opinion is not a fan of "Mommy Merkel", but it hasn't been enough to propel the actual alternatives from the corners to a position where they can't be ignored, especially since right now the two largest parties (Merkels CDU and the SPD) support Merkels government together. Traditionally they'd prefer partnering with a smaller party, but their preferred coalitions didn't work out. The alternative combinations that would have had a majority are not seen as viable (yet). And sorry, this isn't great for change, but doesn't make Germany non-democratic. Other possible governments after the last elections would have been more interesting, but I'm not sure if they would have represented the votes better. Right now it seems like opinions drift away from Merkel in both directions, so it'll be interesting what happens next year. Election campaigns haven't really started yet, so it's hard to judge how the large parties are going to position themselves. SPD has to do something to break out from Merkel, or work another 4 years with her.
- crd4tn4jky 10y ago
  German quality of life is the best it's been since unification, why would Germans want to get rid of her?
osullivj 10y ago
Yes. The treasury depts in those French and German banks thought they were being smart buying Greek debt, because they got another 50 or 100bps from Greek euro govies as opposed to German, and they were both AAA. There's a reason you're getting those extra beeps! Because you're taking more risk! But in the end those treasury dept investors were made good by the ECB, as though they'd taken no risk at all. This was scandalous and an abuse of the ECB as an institution by the French and German govts. I voted remain on 23 June, but this kind of thing almost made me vote for Brexit.
- stuaxo 10y ago
  Same here wrt to voting remain.

golemotron 10y ago

I'm not sure why Merkel is still in office. She's been behind most of that policy, along with the current immigration crisis, and the policies that Brexit was a rebellion against. Ostensibly, Germany is a democracy, but she's had the chancellorship for 10 years and she uses her position to be the EU's de facto leader. There don't appear to be term limits.

georgeecollins 10y ago
I think because the flaws with the Euro that have been very disadvantageous for Greece are for the same reason very advantageous for Germany. Germany gets to have a big account surplus with a relatively devalued currency. She may be doing the wrong thing for EU, but the right thing for Germany. In the long run perhaps the right thing for EU is the right thing for Germany, but I don't think German voters see it that way right now.
detaro 10y ago
She is still in office because she hasn't done that many unpopular things, especially in her first 2 terms. If anything, she is as seen as to inactive, but as long as the status quo wasn't too bad... And internally, many see her having a lot of influence on the EU as good. The general opinion is not a fan of "Mommy Merkel", but it hasn't been enough to propel the actual alternatives from the corners to a position where they can't be ignored, especially since right now the two largest parties (Merkels CDU and the SPD) support Merkels government together. Traditionally they'd prefer partnering with a smaller party, but their preferred coalitions didn't work out. The alternative combinations that would have had a majority are not seen as viable (yet). And sorry, this isn't great for change, but doesn't make Germany non-democratic. Other possible governments after the last elections would have been more interesting, but I'm not sure if they would have represented the votes better. Right now it seems like opinions drift away from Merkel in both directions, so it'll be interesting what happens next year. Election campaigns haven't really started yet, so it's hard to judge how the large parties are going to position themselves. SPD has to do something to break out from Merkel, or work another 4 years with her.
crd4tn4jky 10y ago
German quality of life is the best it's been since unification, why would Germans want to get rid of her?

osullivj 10y ago

Yes. The treasury depts in those French and German banks thought they were being smart buying Greek debt, because they got another 50 or 100bps from Greek euro govies as opposed to German, and they were both AAA. There's a reason you're getting those extra beeps! Because you're taking more risk! But in the end those treasury dept investors were made good by the ECB, as though they'd taken no risk at all. This was scandalous and an abuse of the ECB as an institution by the French and German govts. I voted remain on 23 June, but this kind of thing almost made me vote for Brexit.

stuaxo 10y ago
Same here wrt to voting remain.