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Greece's failure will only destroy banks that France and Germany aren't interested in preserving. They can play the zombie-bank game for a long time. Also, I
by Estragon 15y ago
Greece's failure will only destroy banks that France and Germany aren't interested in preserving. They can play the zombie-bank game for a long time.
Also, I really disagree that this crisis has evolved from idiocy. It's more a matter of misaligned incentives. Many of the people who have caused this mess have already profited handsomely from it.
- bd_at_rivenhill 15y agoGreece's failure will invite a sustained speculative attack on Spain and Italy which would probably require coordinated actions between European and non-European (i.e. American and Chinese) governments to stop. I agree that the crisis is a matter of misaligned incentives, but I include politicians and bureaucrats from pretty much every country in the set of those who have directly misaligned incentives (i.e. not just indirectly misaligned by campaign contributions from wealthy bankers), so I have very little faith in the ability of regulation to solve the problem.