Cato Institute: Maybe Greece should go bankrupt
2. Bailing out Greece will reward greedy and short-sighted interest groups, particularly overpaid government workers. Greece is in trouble because the the people riding in society’s wagon assumed that there would always be enough chumps to pull the wagon. In reality, Greece is turning into a real-world version of Atlas Shrugged. Government has become such a burden that the job creators and wealth generators have given up and/or moved their money out of the country. Should taxpayers in other nations reward the greed and narcissism of Greece’s interest groups by being forced to pull the wagon instead?
For What It's Worth 
Maybe AIG and Goldman should have collapsed, too.
Yup
truly. If Goldman and Citi are so precious, leave the Greeks alone. If I were running the show I would rig the response to catch the specs in the CDS markets offsides.
Goldman was saved by the government because the Secretary of the Treasury has most of his net worth tied up in Goldman stock.
More indignant German taxpayers will move assets/tax residency to Switzerland
More indignant NYC/CA/CT taxpayers will move tax residency to TX
Chris
Greece is de facto bankrupt if not de jure. The question is how do they turn themselves around?
I have no hope of that happening. The political and cultural harm of socialism takes generations to reverse, if ever.
Frankly, by any measure , the PIGS ( Portugal, Ireland, Greece and Spain) are bankrupt. Saving Greece is almost required to hold stabilty for the euro. Unfortunately , the Germans will have to bail them out and yet wont have the power to correct the causes of the Greek financial mismanagement
As an aside … Goldman never needed or asked for TARP funds but were forced to take it by the fed so as not to differentiate between Wall Street firms .They repaid it on the first day the fed allowed them to.
Cynic1, it’s PIIGS (you forgot Italy). I heard an interview yesterday with one of the protesting civil servants in which she made the point that the EU had to bail them out because “we gave the world democracy”. Okay, but what have you done in the last two thousand years?
I think that there’s a good chance the Germans will punt and leave it to the IMF, which means in large part us.
the irony is that this country is heading to the same path.
“Goldman never needed or asked for TARP funds but were forced to take it by the fed so as not to differentiate between Wall Street firms .”
I’m still trying to pick my eyeballs up off the floor.
Richard … I left out Italy since I thought Id be attacked for not knowing how to spell pigs
Seriously tho … Italy is a special case since government stats dont reflect the huge underground economy estimated between 20 and 40 % of GDP….the old canard that for a relatively poor western country , they sure live well.
Greenwich – X…. Is there a 3 second rule on eyeballs >
I know of what I speak … first hand.
Cynic1 – Any thoughts on the rest of the grab bag?
http://www.businessinsider.com/henry-blodget-the-top-10-ways-banks-are-still-getting-secret-bailouts-and-subsidies-2010-1
http://trueslant.com/matttaibbi/2009/07/16/on-goldmans-giganto-profits/
cynic1: that is a self-serving talking point for an audience of people who do not understand that money is fungible. This blog is not part of that audience. GS didn’t have any trouble taking the TARP money laundered through AIG.