Who to blame for Greece

  1. Syriza: They got elected by lying their heads off, went into negotiations insulting everyone and issued confusing statement after confusing statement about their plans. Finally, they called a dishonest referendum on nothing. But how come the Greeks were desperate enough to vote for this gang of clowns?
  2. IMF: A currency area close to the US in economic size which can borrow at almost 0% comes to them asking for help. Instead of replying “GROW THE FUCK UP” they agreed. This caused problems for the plan of hiding Greek debt indefinitely since the IMF likes to pretend debt is sustainable, and also since they believe (believed) large primary surpluses are a way to bring down debt.
  3. Jean-Claude Trichet: It’s impossible to know how much of the stalled euro zone recovery was due to the insane ECB rate increase, but surely SOME of it. Even a slight improvement in the recovery would have helped prevent the Greek mess.
  4. Germany: Their insanely large current account surplus is a large part of the euro zone problem. The easiest way to fix this would be to blast off a few hundred billion euro in fiscal stimulus. Now people say higher German wages would not help Greece since they export different things. Rubbish I say. For sure SOME products are similar. Also, surely some of the stimulus money / higher wages would have been spent on feta cheese / whatever.
  5. EC/Germany/Finland/Slovakia/Spain: Greek primary surplus as % of GDP has been: 2009[-10.2%], 2010[-5.2%], 2011[-2.9%],2012[-1.3%],2013[1.2%]2014[1.5% forecast]. So the euro zone deserves some credit for preventing a total collapse 2009-2010. But 2014 would have been the year to say: “Good job Greeks. You actually even overdid it. 0.5% surplus is enough. We’re sorry your economy collapsed but you have to unerstand it’s politically impossible for our taxpayers to fund you indefinitely.” They didn’t. Instead they called for higher surpluses.

4 thoughts on “Who to blame for Greece

    1. hedgestock.eu Post author

      It wasn’t meant to be a complete list. You are right of course. Syriza isn’t the first Greek government to make mistakes.

      Reply
  1. K. Williams

    Come on. Surely on any list of whom to blame, Syriza has to be well down there. I mean, they may have bollixed the negotiations, but they’ve only been in power six months. They weren’t the ones who got Greece $300 billion+ in debt, and they weren’t the ones who thought it would be a good idea to lend Greece hundreds of billions of dollars.

    Reply

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