Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
a. What resources would be given away if the EU through some mechanism that might or might nor include the ECB lent Greece at a reasonable rate, such that 1.the lender(s) would make a decent profit and 2. the Greek budget could sustainably guarantee the eventual repayment of most or all loans, something which is very iffy at this point if the IMF/Eu plan is followed as is.
b. I'm not sure I understand why the issue is Greece, or only Greece, or mainly Greece any longer. There is a sustained attack on both the Euro and the European social model, which started in Greece due to the pathologies of Greek development, in the same way that lions start picking of buffaloes starting from the weakest.
c. Street riots and general societal havoc are more contagious than people think.
d. Unless one defines the "world" as Greece's financial lenders who bet on a losing horse and now are trying to sell it in order not to lose their money, I can't see how the world stands to gain by Greece's default.
e. Greece was following a path this past decade, that was hailed by all, including the EU and the IMF as the correct one, and which led to continuous and substantial growth for a decade and a half. No one, now complaining, disapproved at the time. People who insisted that a debt bubble is no way to build a stable economy were ridiculed or marginalized because they didn't understand the New Ever-Expanding Economy worked. In fact even in late 2009, lenders were ready to lend Greece at very low rates: at 4+ % the debt was easily sustainable.
f. Most Greek citizens have seen precious little of the money involved as any sort of benefit. German arms dealers, Lockheed Martin, Electronics giants (such as Siemens caught red-handed bribing Greek officials, yet still allowed to bid for Greek government contracts), and all sorts of other major corporations, saw much more of it.
g. Greece is an abstraction. It's not Greece that is being asked to pay up. It is its working class. The elites have sent their money to Swizerland, Cyprus, or bought Real-Estate in the poshest parts of London.

The road of excess leads to the palace of wisdom - William Blake
by talos (mihalis at gmail dot com) on Tue May 25th, 2010 at 05:55:26 PM EST
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