The Biteme Think Tank, somewhat aslosh in ouzo, olives and feta cheese, has been studying the Greece problem.
We previously noted that Greece is screwed. For decades, Greek governments of both the right and left have been cooking the books to disguise the actual state of their economy. (And during that period, most of the country’s prime ministers had degrees in economics!) Today, Greece is no less screwed, mainly because the citizenry still has no stomach for financial retrenchment.
So what should the economic powerhouses of Europe (i.e., Germany) do? Cutting Greece off from further loans could have a destabilizing effect on the whole of the EU. On the other hand, not doing so would just be throwing good money after bad,
On balance, we think they should cut Greece loose and concentrate on shoring up Spain and Italy.