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I wouldn't go as far as the OP: I think Heinlein's razor comes into effect here. There is a clear solution to the problem, which is debt forgiveness. The troika
by soVeryTired 10y ago
I wouldn't go as far as the OP: I think Heinlein's razor comes into effect here. There is a clear solution to the problem, which is debt forgiveness. The troika has known this since the crisis began. The problem is that it's politically untenable. So instead they kick the can down the road, do nothing, and hope everything gets better on its own. They've caused a depression in Greece. They've also turned me into a euroskeptic.
- jbooth 10y agoVery much worth noting too that the bailouts ensure banks (mostly German banks) get paid back. Bankruptcy or debt forgiveness means the banks don't get paid back. And now when EU taxpayers get pissed about paying for the bailout, the EU bureaucrats can point at those darn lazy greeks as the problem. At the end of the day, it's the banks' job to assess risk, they lent money to Greece, and they're only getting paid because of this bailout. What's greece paying in interest, again? Some kind of huge risk premium, probably?