This is an outstanding, must-read article from Nobel prize winning economist, Joseph Stiglitz, published by Project Syndicate.
via A Greek Morality Tale by Joseph E. Stiglitz – Project Syndicate.
This is an easy to read analysis that clearly blames the troika for Greece‘s current financial crisis.
Interesting, Stiglitz argues for reform of the Eurozone itself, rather than structural reform in Southern European countries, like Greece etc. This is very different to the official view coming from Germany.
The Troika have not helped Greece’s economic situation but neither have the Greeks themselves.
Dr Alf has brought us an interesting but incomplete analysis by Joseph Stiglitz which tells only part of the story.
In the past I remember visits to that country in which buildings always remained in unfinished condition so that people and businesses could avoid paying any taxes on property,civil servants would retire on full pensions at age 38 and then take up other jobs.
From what I see very little has changed,the Greeks do not make things that people want to buy and have for years imagined that well heeled German tourists and others would drink Greek ouzo,soak up culture and spend their money on a sufficiently large scale.
Relying on the sun and one or 2 industries is not a wise strategy and the robber baron tendencies of 5 leading Greek families who have plundered the country with impunity have made matters worse.
It is time as Alan Greenspan,formerly of the Fed says,for contemplating the inevitability of a Greek exit from the Euro.
That will be painful for the Greeks but necessary so that they can solve their own problems.
For those with exposure to Greek debt there will need to be sequestration of assets to act as insurance against moral hazard and the risk of Greek repudiation of legitimate debts