Monday, July 6, 2015

A Greek and European Tragedy

Non Greek but top economists suggest the Greeks should vote No to the austerity Europe in imposing on them. 246 Greek professors of economics beg to differ. Me, I think the local professors are right because the outsider have no skin in the game.

You can't just look at economics. Politics and and nature of Greek society is even more important and will determine economic behavior. Local economics dons remember how successive governments print Drachmas like there were no tomorrow. It is not workable.

Either way we have a Greek tragedy and a head wound on Europe. Under test we discover there are no Europeans but Germans, French, Dutch, Italians etc.,

Europe is fragile. The whole is clearly less than the sum of its parts. And it looks like after writing I forgot to click "Publish" last night.

From the WSJ earlier I found,

At 2:40 am this morning, the NYT sent this to subscribers.

Face is more important than life. The Greeks would not be humiliated. I think these people with no reason to be so proud. Forget about ancient Greece. You have not lived up to your early achievements.

It would be better as the 246 of your own economists suggested to remain in the Eurozone. On the other hand it is unrealistic to expect them to have voted differently.

A meek but strong people cannot be vanquished. I looked over the world and cannot find such a society in our times.

If there is any doubt about Merkel's and European leadership, that is now confirmed.

Update: 10:00 am

The Germans fail to see how immature they are. The Greeks are no better but the initiative and power is with Deutschland. How much are you prepared to keep Europe together? Whilst Greeks were cheating the rest of Europe had chosen to look the other way. Now the birds have come home to roost.

Update: 4:10pm 

Excellent how Thomas Piketty exposed Germany's hypocrisy.

Picketty is right.

Update: July 10 10:10pm

There is a glimmer of hope from this lowering the bar for European leaders to show statesmanship.

To me damage has already been done from over indulgence in brinkmanship.

The small Baltic states rightly pointed out that they could live with much less, why can't the Greeks also. Well these southern species are spoilt. If austerity makes them stronger, well and good. To be practical they would rather roll over and die.

At the end of the day the Germans must recognize there are strict limits getting their neighbors to adopt German ways and values. Want to make the union work, be realistic. Impractical ideals only create time bombs which will explode often at the most inconvenient time.


  1. Had the Greeks been able to see light at the end of tunnel with another round of bailout, they would have voted otherwise.
    To them, voting either way meant death by a thousand cuts or an instant blow.
    Face saving aside, I hope Tsipras can find a way after "breaking cooking pots and sinking boats".

    1. It will get much worse for the Greeks before it can get better. It would take so long to happen that their best and brightest will leave prolonging their time in purgatory.

  2. Good Afternoon,

    For your lunch time reading pleasure, may I recommend:

    Greece — The One Biggest Lie You Are Being Told By The Media

    1. Thanks David, the version you share also has a following. For my purposes I need to consider all views with significant following because they inform behavior which affect the markets. Here is a broad picture view Ezra Klein shared via his Vox channel recently. See

      Whatever it has become Greece had made some quite unhelpful choices for themselves. Enough to allow their European counterparts to point fingers at them. I think nobody is looking good out of this silly debacle.

  3. If you have worked with Greeks you will find them proud and stubborn in the face of expert advice. Once was enough. Not surprised this has happened.

    1. Not just the Greeks. There are many others too. Do you happen to be Asian? Even more so if these folks encounter Asians.