Decades of government intervention into economic activity have produced economic distortions, sluggish growth, an unsupportable debt burden, and a rotten financial structure ready to collapse of its own dead weight. In spite of that record, most Europeans want more government. That’s their choice. Like it or not, sooner or later, we reap what we sow.
Michael Pettis at China Financial Markets asks the question "Will Greece unravel by Christmas?"
As it turns out, Mr. Papandreou's seemingly democratic gesture was more likely a political tactic to lure the opposition conservatives into sharing the political burden of passing the bailout deal. Although many of these conservatives had likely supported the bailout package, they kept their distance due to its extreme unpopularity on the street.
Our head of state is now in Cannes, France, at the G-20 summit, gallivanting with elites from the planet's most powerful economies. For the first time since his 2008 presidential campaign, Barack Obama isn't the center of attention.
If the world applauds self determination, they would certainly applaud Papandreou’s action.
Resolution of the European mess has been all about how to bail out banks at taxpayer expense even though banks brought this mess on to themselves by treating sovereign debt as if it had zero risk.