Tuesday, June 21, 2011

Moral Hazard in Greece

by Aristides N. Hatzis

New York Times
June 20, 2011

Apparently there is a God and he’s Greek, as some people in Greece seem to believe. One of the proofs of his existence is the fact that Greek political leaders have the luxury to play opportunistic games -- and hell hasn’t broken loose. Yet.

Despite the low quality of the Greek political class (conservative, economically ignorant, populist and shortsighted), Greece was lucky enough to be governed, during its tumultuous history, by at least three great leaders who ensured Greece’s place in the Western world. One of them, K. Karamanlis the elder, managed to persuade European leaders to accept Greece into the European Economic Community in 1981, seven years after the fall of the military junta.

Greece is not Argentina. One of the fundamental differences is that Greece is a member of the European Union and the euro zone.

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