I used this example with a client earlier this week:
Suppose I have 5 children. From a responsibility point of view, two of them are great, two are about average, and one is awful. While the irresponsible kid can’t generally be counted on to make rational responsible decisions, I continue to subsidize his lifestyle. After years of handing over funds that are no doubt going to unproductive resources, the irresponsible kid finally hits the financial wall and flames out.
In the example above Germany is the parent and Greece is the irresponsible kid. So who is to blame? Certainly it could be argued both sides are culpable. While the irresponsible kid did not spend money wisely, the parent still could be considered just as irresponsible.
Admittedly who is at fault is of minor importance; however, as I hinted at before the above example illustrates just how Germany’s stance is misguided.
While the rest of the Eurozone and the world should help, it just seems clear Germany needs to take the lead. Saying “it’s not our problem or our fault” not only hinders any sort of solution, but is categorically untrue.
With default nearly certain, some sort of action is needed to assure “breakdowns that seemed inconceivable at one moment can seem inevitable at the next.”
