Another German professor, who is prepared to speak out about the latest effort to "save" the euro and prevent Greece from bankruptcy:
Nearly 86 percent of private investors have agreed to join in the debt-swap deal that will help Greece avoid an uncontrolled default. But is that good news? Many experts have their doubts. In a SPIEGEL ONLINE interview, economics professor Harald Hau argues that not only will the plan put the burden on taxpayers, but it will mean an even bigger crisis to come.
SPIEGEL ONLINE: Is the debt haircut enough to free Greece from its worst burdens?
Hau: No. The agreed-upon debt haircut is insufficient. No matter what, there will be a second, proper bankruptcy. It will probably take another nine months to three years, but then there will be a really big crisis, both economically and politically. The problem has only been deferred. The next time it will only affect the taxpayers, though.
SPIEGEL ONLINE: Why?
Hau: The banks have been stalling for time over the last one and a half years. They wanted to take as many interest payments with them as possible. Now they realize that time is running out and have thus changed their strategy. They are just trying to pass on as many debts as possible to the public sector. From their perspective, this is a smart move. But it will be a catastrophe for taxpayers in the end.
Read the entire interview here
Merkel, Sarkozy and the rest know all this very well, but they all have their own reasons to behave as though they would be saving Greece and the euro.
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