Huge efforts are being made to save Greece from "Bankruptcy" !!! Why are President Sarkozy and Angela Merkel multiplying meetings at every turn and everywhere ?
From published figures it seems that their two nations, France and Germany, have the highest exposure, i.e. risk of financial loss, if Greece becomes bankrupt !!! Is this due to the financial risks that companies in these two countries have taken ?
There is a basic principle of financial common sense which states: "Do not throw good money after bad !!!" In other words, take the loss on Greece as it is at present !!! The cost, or loss, should fall where it is !!! Greece must devalue, readopt the Drachma, and perhaps much later decide to readopt the EURO again as its currency !!! If the EU is in agreement !!!
Such a decision would oblige the Greeks to take and accept measures which are hard and not popular and which should have been taken a long time ago !!! Why should everyone in the EU suffer ?
The system of the EURO is flawed !!! The EURO was created about 12 years ago by idealists who did not realise that a currency needs controls. Before 17 countries adopted the EURO as their currency, there were 17 Ministers of Finance who were responsible for monitoring the health of the currency of their country. Afterwards this became the responsiblity of the EU !!! Who in the EU has the ultimate responsibility to supervise this function ?
The EU now has, officially, three countries with financial problems. Others are watching in the corridors to decide what will be the best time to profit from EU financial aid !!! Perhaps this is also an opprtune time to for the EU to introduce and tighten financial controls !!!
President Sarkozy and Angela Merkel must lead the way !!! The losses from a Greek Bankruptcy should fall where they fall !!! If Bad debts are suffered they should be recorded in the accounts !!! This in fact would serve as a lesson to all financial institutions, including particularly, the Banks !!!
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