Socrates would have rattled on regardless "those fools spent that which they did not have" !! Plato would have swore the state and balked at the profligate lending that led this historic nation to the brink of collapse while holding the future of the European Union at worlds end.
Yes!! The Greeks should never have over-leveraged themselves with debt. The post-mortem is always easier to listen to or write about, especially since analysts pop out of nowhere onto the screens with their expert opinions.
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However, it is also noticed that peoples wrath against the system is normally vented in times like these, when the economy is dancing on a tightrope above a deep recessionary gorge. More so in Greece, especially since the public sector workers now feel that they are being shortchanged for no fault of their own. Much of the criticism is also due to the fat paychecks that Wall Street fat cats are still taking home despite the US Economy being in a Limbo
What people (or the mob) do not understand is that no political system is free from human exploitation. Greed is the hidden nature in all of humanity, whether Socialist, Communist, Theocratic or Monarchic. All forms of government bestow power upon a selected group of individuals (or maybe even one) to rule and more often than not, exploitation driven by greed gradually seeps into the system.
So the Greeks have 2 options before them. Having feasted on their Baklava for the last decade or so, they must now eat bitter herbs. They would just love to respond to the crisis in the manner that America has (to borrow its way out), but unfortunately the dollar is still the words reserve currency and that gives America the kind of leverage that no other country presently has.
They can, like Britain be convinced into eating bitter herbs (implementing tough austerity measures), but too much austerity in a limping economy would not do the trick unless it is followed up by regulations that untangle restrictions in Greece for Private businesses to operate/thrive.
Instead, they have chosen to blackmail the EU into leaving the Euro if harsh austerity measures are forced upon them. They seem to be forgetting the adage "there ain’t no free lunch". Decoupling from the Euro will serve them no purpose whatsoever. They would then be forced to return to their original currency, the "Drachma", and given the state of things, the Greeks will never be able to raise money on its own via bonds, which would be relegated upon listing to junk status.
Not to mention of course that leaving the Euro would be tantamount to "kicking the can down the road". To put it in a nutshell, whichever option the Greeks choose, their days of sweet shopping are over, and a long cold winter is about to set in, one accompanied by the steaming smell of bitter herbs.
Initially posted on http://technorati.com/politics/article/greek-pastries-and-bitter-erbs/page-2/#ixzz1Qk6pc2AF
Yes!! The Greeks should never have over-leveraged themselves with debt. The post-mortem is always easier to listen to or write about, especially since analysts pop out of nowhere onto the screens with their expert opinions.
While Riots flare up in Greece and the common man readies himself to feel the pinch of the proposed austerity measures, it is almost necessary to take a long hard look at the system itself. Capitalism riding alongside democracy is often touted as the only system that would lead to a better world. A world where what you sow is exactly what you reap (give and take a few weeds), where the market has no favorites and merit is all pervading.
In my opinion that probably still is the case. It is often observed that peoples love for capitalism reaches its zenith when the economy is at its crest. The US Economy is a typical case in point. Free markets do allow Financial Institutions to over-leverage themselves since at the end of the day it is "profit" that everyone looks for. The US is still pulling back from their second biggest recession, but it is indeed unbelievable that their citizens still repose faith in the system. Elsewhere in the world too, in Britain, the new coalition Government is pushing through their toughest known austerity measures since they once ruled India.
What people (or the mob) do not understand is that no political system is free from human exploitation. Greed is the hidden nature in all of humanity, whether Socialist, Communist, Theocratic or Monarchic. All forms of government bestow power upon a selected group of individuals (or maybe even one) to rule and more often than not, exploitation driven by greed gradually seeps into the system.
So the Greeks have 2 options before them. Having feasted on their Baklava for the last decade or so, they must now eat bitter herbs. They would just love to respond to the crisis in the manner that America has (to borrow its way out), but unfortunately the dollar is still the words reserve currency and that gives America the kind of leverage that no other country presently has.
They can, like Britain be convinced into eating bitter herbs (implementing tough austerity measures), but too much austerity in a limping economy would not do the trick unless it is followed up by regulations that untangle restrictions in Greece for Private businesses to operate/thrive.
Instead, they have chosen to blackmail the EU into leaving the Euro if harsh austerity measures are forced upon them. They seem to be forgetting the adage "there ain’t no free lunch". Decoupling from the Euro will serve them no purpose whatsoever. They would then be forced to return to their original currency, the "Drachma", and given the state of things, the Greeks will never be able to raise money on its own via bonds, which would be relegated upon listing to junk status.
Not to mention of course that leaving the Euro would be tantamount to "kicking the can down the road". To put it in a nutshell, whichever option the Greeks choose, their days of sweet shopping are over, and a long cold winter is about to set in, one accompanied by the steaming smell of bitter herbs.
Initially posted on http://technorati.com/politics/article/greek-pastries-and-bitter-erbs/page-2/#ixzz1Qk6pc2AF
