It's groundhog day for Greece as the third bailout package is negotiated. And there's no reason to think this one will be any more successful than the last two.
No one seems to really believe the latest bailout plan will work without debt relief. But the only way to get Greece to adopt essential reforms is to pretend it isn't in the cards.
Greek demonstrators protested as its government voted to accept the latest austerity conditions. Greece would have been better off exiting the Eurozone.
AAP/New Zulu/Gael Michaud
If Greece exited the Eurozone it would face several years of economic chaos. But it would be the master of its own destiny. The current EU offer will further destroy the Greek economy.
The euro remains fatally fragile so long as the eurozone lacks a mechanism for forgiving debt.
Greece’s gross domestic product, shown here in 2010 constant dollars, has plunged since 2008.
RED St. Louis Federal Reserve Bank and Hellenic Statistical Authority
On Sunday, the citizens of Greece voted No on the country’s referendum to accept a package of money in exchange for further austerity measures. Now what? Every armchair economist from Iowa to the Aegean…