Greek Crisis and the Eurozone

There is the need to distinguish between restructuring Greek debt and the viability of the Eurozone. Unfortunately the financial markets and European political 'leaders' have continued to obfusticate and confuse this distiction.

Let there be no ambiguity: Properly organised the Euroone can permit Greece to go basnkrupt or restructure its loans without placing at risk the Eurozone or European poitical and financial institutions.  There would be inconvenience and some foolish lenders who sought high risk premiums on their investments in Greek bonds would have to take a hair cut.  But the bankruptcy of a small government that, like any Ponzi scheme fraudster lied, deliberately used debts to spend more than its means, and represents only three percent of the Eurozone GNP hardly represents an overwhelming disaster.  Indeed a Greek default would most probably in the long run strengthen the Euro and its Institutions, and teach foolish bankers and lenders, profligate Greeks and PIIGS, and irresponsible politicial 'leaders' lessons they need to learn.

The greatest mistake would be to risk all by extending open-ended support to those who manifestly are unable, or unwilling, to abide by rules and keep their spending inder control.

Link:
http://www.europeanvoice.com/article/2010/05/are-the-barbarians-at-the-eu's-gates-/68044.aspx