Extend and Pretend;

This is what everyone in power seems to love; extending maturities and pretending everything will be fine somewhere down the line – possibly after their term is over….

In this pretend game there is little place for organisms like Varoufakis and his boss Tsipras. These two are party poopers, people that openly state that their country is bankrupt? people that declare that the problem has to be adressed as such with a bankrupcy receiver? and with a new marshal plan? Not via the banking system!?

But they got voted in, they now have a place at the table, and their actions will indeed be disruptive to the policies and balances currently in existence.

Is this the problem, avoiding disruption to the extend and pretend game?

Or is the problem the one of forcing within the PIGS nations structural reform making their generally corrupt and self-serving governments dissolve to make way for well-meaning civil servants, which can become reliable counterparties?

If the goal is the second one, Varoufakis, and his boss Tsipras may in fact be an opportunity; what better context than a bankruptcy procedure (and a marshal plan) to enforce structural change? And in this case the plan is also blessed with the support of an overwhelming democratic majority!

Oh my god, maybe this time they will actually mange to tax the shipping industry?!

Draghi took the first step; after all if you go and tell your banker that you are bankrupt what is he supposed to do? If anything it is quite surprising that he has been willingly lending to you up to this point… extend and pretend? Kick the can down the road? You name it.

Hopefully this move of the ECB is not just a negotiating posture.

What Europe will do will be interesting to watch; will it continue to try and hide the dirt under the carpet?

Or will it stand up boldly and help the citizens of Greece reform and restructure their government, their bureaucracy and their equally self-serving financial systems?

Greece with the help of Varoufakis, and his boss Tsipras may become an open air laboratory for effective and cooperative reform. Should we say welcome bankruptcy, welcome the marshal plan!?

Had this been done in 2009 now the problem could have been well on the way to its healing, so stop worrying about the left and right issue, and lets see if we can help them do something good.

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