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I agree with you that the BCE policy is too tight, but, for one, what makes you think that Greece, using competitive devaluations, could still be admitted in th

I agree with you that the BCE policy is too tight, but, for one, what makes you think that Greece, using competitive devaluations, could still be admitted in the EU common market without barriers and tariffs? Maybe a little economy like the Greek one could be allowed, but I'm pretty sure that it wouldn't be the same for Italy and Spain. And in the case of Banks that invested in Greek bonds, don't forget that the accounting was falsified exactly to get low interest rates which albeit higher than the German ones were VERY much lower than what they would have been without the Euro, to the benefit of all the Greeks. I'm sorry for those who are getting the direst consequences, but I don't see the Greeks having any moral high ground in this situation, not even against the evil German banks who lent them money.

guelo 15y ago
I'm not talking about morality, I'm talking about what would make the most sense for a rational Greek people to do going forward. I'm arguing that a default would make the most sense, but in reality the interwining of the euro makes these issues very complicated. The larger picture is that this is the biggest crises the euro has faced and it might not survive, especially since the nationalistic politics make it so hard to have a coordinated response. The leaders seem to think that the austerity measures throughout all of Europe will allow them to muddle through, but that looks to me like a decade of hardship and slow growth which will bring political instability and even riots as seen in England. I think the only hope would be the creation of a euro bond which would allow borrowing to be backed by the full faith and credit of the Euro Zone as a whole, but that would mean tighter political integration between the countries which seems to be the opposite of what people want at this point.
- danmaz74 15y ago
  I agree about the euro bond. About the rational choice, I think there are too many variables at play to really make a rationally "good" choice. In the end you have to make a bet based on insufficient data, as it is almost always the case in these matters, and I would bet on a tighter European Union, not on "everybody for themselves". Let's hope that our leaders will somehow see the light... and lead!

guelo 15y ago

I'm not talking about morality, I'm talking about what would make the most sense for a rational Greek people to do going forward. I'm arguing that a default would make the most sense, but in reality the interwining of the euro makes these issues very complicated. The larger picture is that this is the biggest crises the euro has faced and it might not survive, especially since the nationalistic politics make it so hard to have a coordinated response. The leaders seem to think that the austerity measures throughout all of Europe will allow them to muddle through, but that looks to me like a decade of hardship and slow growth which will bring political instability and even riots as seen in England. I think the only hope would be the creation of a euro bond which would allow borrowing to be backed by the full faith and credit of the Euro Zone as a whole, but that would mean tighter political integration between the countries which seems to be the opposite of what people want at this point.

danmaz74 15y ago
I agree about the euro bond. About the rational choice, I think there are too many variables at play to really make a rationally "good" choice. In the end you have to make a bet based on insufficient data, as it is almost always the case in these matters, and I would bet on a tighter European Union, not on "everybody for themselves". Let's hope that our leaders will somehow see the light... and lead!