Opinion – A Greek Morality Tale by Joseph E. Stiglitz – Project Syndicate – John Gelmini

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 thirty-eight;  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 two industries is not a wise strategy. And the robber baron tendencies of five 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.

John Gelmini


Who’s (still) exposed to Greece? | Silvia Merler at Bruegel.org

Guess what, the UK & US banks have been increasing their exposure to Greek debt. You don’t believe me? Here’s the evidence. This is a must-read article from Bruegel. Check it out!

France has played it smart. But the UK & US banks are now more exposed than Germany, according to the data in this article.

Presumably the Anglo-Saxon banks thought they could make a killing on Greek debt, rather than do the dreary work of making loans to small businesses?

Once again, I ask,

Is it not time to break up the big banks?