Saturday, August 27, 2011

Greek Dinner

Greece has overextended itself. As the Greek government is unable to easily repay assorted (mainly private) lenders, pressure has developed for other European governments to bailout the Greeks. As I understand it, such support allows the Greeks further easy borrowing, at lower interest rates.

Finland has demanded collateral to invest in Greece, not simply promises of reform and privatization. Seems reasonable. But too many bailouts are tapping public funds, in often incestuous insider relationships.

The global financial system has become corrupted. One of the worst offenders is the US Federal Reserve, which has quietly been lending private banks huge amounts of funds with little oversight.

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