Monday, January 26, 2015
Keep your eye on Greece
Daniel Hannan says that the danger is not that Greece leaves the Euro and its economy collapses, but rather that it leaves the Euro and its economy thrives - setting an example for Spain and Italy. The question then is what will the EU do to buy off and/or intimidate Greece's new government?
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5 comments:
Hey, planning a trip to Italy and rubbing my hands with glee over the current dollar/euro exchange rate. Best in a decade and "Parity here we come!"
Tacitus
This is Greece we're talking about. In the past 200 years, we are talking about five bankruptcies plus numerous currency devaluations. The new guy and his party are demanding that creditors forgive a large portion of the Greek debt. Whatever they choose to call it, that would be bankruptcy number six.
tl;dr: The chances of the Greek economy thriving - under any circumstances - are zero.
Even if I credited the possibility of the Greek economy thriving meaningfully more than Brad does (which it happens that I don't), I would be disinclined to use the word "danger" to refer to any risk to the Euro.
It was a bad idea from the beginning, and the longer it's propped up by the European governing elite, the longer it'll keep causing trouble.
At least (by my reading of the tea leaves, anyway) it's unlikely that Syriza will decide that a Short Victorious War(tm) is the cure for what ails Greece.
Right you are, Brad.
In today's economy you have to have access to credit. Greece doesn't seem to think it has to pay its bills. And - these are among the most rabid socialists of the EU.
Pass the popcorn.
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