Friday 18 May 2012

jubilee or augean stables

Setting a bad example is sometimes just a pedantic argument. Negative encouragement, I think, is probably not worse than market-contagion.

Wouldn’t it have been easier, foregoing a lot of pantomime and drama, and less costly in terms of make-believe wealth and real livelihoods to have simply forgiven Greek sovereign-debt plus given the country some seed-money to start over and written the expense off as sunk-costs? To force out any member of the Euro Zone against their will is counter to the spirit of integration that the EU represents, but also is the insistence on inclusion, when it comes with too high a tribute, with a list of impossible sacrifices and challenges that read in short-form like the Twelve Labours of Hercules. Just as Greece (and now the outgoing French government, who are sure to be in good company) have been accused of underestimating their financial standing and potential severity of the problems, rankling turmoil could have been staunched and discounted by now, instead of dragging out the whole affair. Integration also means the acceptance of common-losses, and though the solution, after the can has been kicked down the road for quite a piece and the problems have swelled, will be universally disliked, they can still be absorbed by the economy of the union. Lenders and debtors conspired to exacerbate these conditions until they came undeniably into our range of vision. Off-putting the developing urgency of some markets makes for an unflattering reflection of our own delay-tactics and the messy regrets over not quashing a trend while it was still emergent and manageable.