Re:Varoufakis reveals cloak and dagger 'Plan B' for Greece, ...
by jacobolus on Monday July 27, 2015 @01:13AM
(#9953456)
What makes you think they’d get any kind of cooperation or assistance from the ECB? They’ve gotten nothing but overt hostility from the ECB for 6 months.
Your link simplifies to an extreme, hand-waving away all the difficult parts of implementing the plan (e.g. how to keep the banks open, how to keep the government functioning, what the response would be of the IMF and ECB, how to prevent capital from immediately fleeing en masse, whether Greece actually has capacity to print and distribute drachmas, etc.). Its suggested approach might or might not work out, but it definitely would not be any kind of smooth ride.
Perhaps he was just overly optimistic in the wake of the referendum No vote. His prediction – “it’s likely the institutions will seek a quick compromise to avoid serious damage to themselves and the Euro” – turned out to be fairly inaccurate. Instead they refused to compromise and in fact made even stronger demands than they had before.
Your link simplifies to an extreme, hand-waving away all the difficult parts of implementing the plan (e.g. how to keep the banks open, how to keep the government functioning, what the response would be of the IMF and ECB, how to prevent capital from immediately fleeing en masse, whether Greece actually has capacity to print and distribute drachmas, etc.). Its suggested approach might or might not work out, but it definitely would not be any kind of smooth ride.
Perhaps he was just overly optimistic in the wake of the referendum No vote. His prediction – “it’s likely the institutions will seek a quick compromise to avoid serious damage to themselves and the Euro” – turned out to be fairly inaccurate. Instead they refused to compromise and in fact made even stronger demands than they had before.