Re:Greeks Reject Bailout Terms
by tptacek on Sunday July 05, 2015 @05:49PM
(#9835173)
From what I've read, that appears to be a lie agreed upon: private banks in Europe had a major profit interest in securing speculative Greek debt.
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This would seem to be a core evil of the situation: investors chased risky money but are apparently not expected to be capable of weathering a Greek default.
The risk/reward curve is the fundamental idea of investment. If we privatize reward but nationalize risk, the cost of bonds/mortgages/etc. will never reflect reality. I shudder to think of a system where governments are implicitly assumed to insure everything that's "too big to fail."