Wednesday, July 15, 2015

Understanding the Greek Crisis by Griff Foley

Shocking isn't it, that the Greek government is "ruthlessly pursuing the Greek national interest"#, an accusation levelled by the German Social Democrat leader yesterday?
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The necessary next step is straightforward: European governments and banks have to accept their share of responsibility for the Greek crisis and write down a percentage of Greece's debt. Otherwise the Greek people will continue to bear all the costs of the crisis.

For a fuller analysis, see the following:

The issue encapsulated:

Here's a clear analysis, from an investment banker, doing somewhat better than the German SD leader:

And a complementary analysis by Joseph Stiglitz:

European bankers admit their Greek "solution" is bound to fail:

There are alternatives:

For more analysis, and continuing coverage of the Greek crisis: