The Other McCain updates the bad news coming out of Greece.
In addition to Margaret Thatcher’s famous maxim about socialists eventually running out of other people’s money, there is also Stein’s Law. This was coined by Herb Stein, chairman of the Council of Economic Advisers during Richard Nixon’s presidency: “If something cannot go on forever, it will stop.” And the problem of the Eurozone’s weaker nations expecting bailouts from their rich neighbors obviously cannot go on forever. So what happens when it stops? We don’t know.
Portugal, Spain, Italy and Ireland — the other fiscal weak sisters in the Eurozone — may manage to avoid default, and the richer EU nations may be able to stabilize the overall regional economy. If so, the Greek problem is just a Greek problem. On the other hand, who knows?