Going… Going… Greece on the Brink

The social turmoil, bitterness and political infighting that accompany Greece’s debt crisis could offer a preview for other nations that fail to practice fiscal discipline. In exchange for loans, Greece’s creditors demand that the government cut spending, lay off public employees, reduce entitlements and raise taxes. A series of quick fixes and delays have given savviest creditors time to prepare for a default described by analysts as inevitable, shielding their own portfolios from Greek failures and pricing loans and other products accordingly. Maria Margaronis, writing for the Nation, sees few signs of the Greeks embracing reforms or sustainable programs. Instead, Greek voters and politicians, angry about their battered economy may usher in populism, xenophobia, corruption, poverty and a mass sell-off of Greek assets. Nations are better off taking on the hard task of adopting austerity measures – sooner than later – rather than letting creditors decide. – YaleGlobal