On Bloomberg, arguing that the Greece's Bailout Mk2 is unsustainable

Feb. 13 (Bloomberg) — Yanis Varoufakis, a professor at the University of Athens, and Miranda Xafa, president of EF Consulting, talk about the outlook for Greece after lawmakers approved the austerity package demanded to secure a financial lifeline. They speak with Owen Thomas on Bloomberg Television’s “Countdown.” (Source: Bloomberg) CLICK HERE



  • Yiannis, you make it all sound so simple! Is it really? I’m losing hope as are most Greeks. I have been supporting you since I discovered you but now I’m not sure whether its in response to the need to feel comfort since your views provide that hope and comfort we all desire or whether your views are truly a mirror of the facts and logic that prevail.Feeling very confused and desparate!

    • I am afraid that Varoufakis is right. Note how the new bail-out was suggested to go to an escrow account, so it never goes to Greece at all. You won’t really see a single cent from the new bailout.

      I assume that the new bail-out package is based on the assumption that once Greek banks are recapitalized they will be in much healthier state and will be able to finance the economy. What really worried me, is that the economy is not just on downward cycle, but is totally collapsing.
      But, I am afraid it is too late… If you deprive someone of oxygen, no matter how much oxygen you provide later, it makes no difference…

      Unfortunately the internal devaluation idea was a total disaster. Good profitable businesses were wiped out, overtaxation killed any economic activity, bureaucracy has worsen.

  • Yani:

    The implementation of PSI+ is bankruptcy.

    It may not be the bankruptcy you have in mind (designed to relieve pressure on the backs of innocent folk) but it is bankruptcy nevertheless.

    Let’s call it bankruptcy for the 1%.

  • Good interview. Interesting comment about how the United States would handle similar crisis. Here in California, our budget situation is still a mess but there is no thought that California or any other State would ever be kicked out of the Union. That makes me wonder how comparable the EU is to the structure here in the US. One of your earlier post highlights a key difference in that the US system transfers funds from rich states to poorer states via our Federal Tax System. I’m not sure what some of the states would look like without this transfer. It look like Greece is going to become the living example of what happens when richer states do not support poorer states in time of need. It makes me wonder if this type of Union is even worth having?