he Greek people don't seem desperately grateful for the 240bn euros in
bailouts they've had from the eurozone and IMF - and here is one way of
seeing why.
So why aren't investors in a state of frenzied panic? Why have the euro and stock markets bounced a bit this morning? One slightly implausible explanation is that investors believe the eurozone would actually be stronger without Greece, so long as no other big country followed it out the door.
More likely is that they believe reason will prevail, and Berlin will sanction a write-off of Greece's excessive debts.
Here is the important point: outside of Germany it is almost impossible to find an economist or central banker who believed that the previous reconstruction of Greek debt was ever going to work.
So just maybe, after Greeks have made a colossal and some would say pointless economic sacrifice, Germany will allow a rescue that permits the country a fighting chance of crawling out from beneath its colossal debts.
Read more: BBC News - Why aren't markets panicking about Greece?
So why aren't investors in a state of frenzied panic? Why have the euro and stock markets bounced a bit this morning? One slightly implausible explanation is that investors believe the eurozone would actually be stronger without Greece, so long as no other big country followed it out the door.
More likely is that they believe reason will prevail, and Berlin will sanction a write-off of Greece's excessive debts.
Here is the important point: outside of Germany it is almost impossible to find an economist or central banker who believed that the previous reconstruction of Greek debt was ever going to work.
So just maybe, after Greeks have made a colossal and some would say pointless economic sacrifice, Germany will allow a rescue that permits the country a fighting chance of crawling out from beneath its colossal debts.
Read more: BBC News - Why aren't markets panicking about Greece?
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