I have a friend who was born and raised and formed and shaped in the American Mid-West. Common sense pure. We both worked many years for one of the US money center banks headquartered in the Mid-West. For a few years he was my boss. During the 1970s, he spent a few years running the Greek operations of this bank (3 branches). After retirement, he returned to his small hometown in Wisconsin where his family owns a community bank which he still runs today. A community bank takes in deposits, makes loans and provides banking services to customers. Actually, not a bad business model for a bank…
He recently asked me the following question per mail:
“For me, I can’t understand really why everyone doesn’t just face the facts, default on debt and get out of the Euro. Yes, I understand that much of the debt is held by banks and they would like to delay taking their medicine, but sooner or later they are going to have to recognize reality. Some of these countries simply don’t have the means, or the stomach, to meet their obligations. Perhaps you can educate and enlighten me”.
I enlightened him that such basic common sense is not part of the repertoire of EU-elites. And recognizing reality would be far too simple and unsophisticated an approach for EU-elites who pursue much greater and nobler goals! (like saving the Euro and the Eurozone…).