We are a commune of inquiring, skeptical, politically centrist, capitalist, anglophile, traditionalist New England Yankee humans, humanoids, and animals with many interests beyond and above politics. Each of us has had a high-school education (or GED), but all had ADD so didn't pay attention very well, especially the dogs. Each one of us does "try my best to be just like I am," and none of us enjoys working for others, including for Maggie, from whom we receive neither a nickel nor a dime. Freedom from nags, cranks, government, do-gooders, control-freaks and idiots is all that we ask for.
There's nothing complicated about it: Capitalism requires the discipline of losses being taken by those responsible, the firing of incompetents and the destruction of imprudent lenders.
Let's set aside the propaganda for a moment and get real: anyone with the slightest knowledge of Greek finances and the power structure of the Greek economy/society knew it was insanely risky to loan Greece billions of euros.
You are right about that, jay. The banks had little choice in funding Greece. But, now, if Greece blows up, then what the Greeks thought was austerity will turn into living within your means and that will be true austerity. The Greeks will not like it. However, it is ironic that the government that promised to eliminate austerity will be the one to impose it.
Any policy which provides government guarantees to any economic activity is a guarantee that activity will fail. Period. And, in case I wasn't clear enough, that includes banks and all other financial institutions. While there may be rough times for a short period, the economy will recover and the damage will be - mostly - limited to those who were the cause of failure. If they are guaranteed, the damage will be spread around until the entire system is at risk. Don't believe me? Have you been paying attention to the housing market since 2008? Did you notice how it got that way? What do you think is happening again?? Geeze.
Bankers and business executives would not take excessive risks if they knew they would be financially ruined and go to jail for making mistakes. Yes, they would be less likely to make huge gains, but they should be personally responsible for their decisions. Just like the rest of us.
Today I heard a report that S&P management was warned about the coming housing collapse, but would not change their rating because they were being paid by the companies they rated.