Rahn quotes a Swiss friend that told him once:
“It is not that we Swiss are smarter than others, but given our political system, by the time we get around to making a major change, other countries have already proved it to be a bad idea.”
Also in 2014, March to be precise he wrote an article, Greece Shows How Far an Economy Can Fall, he writes:
"The Greek economy is entering its fifth year of decline. Nominal gross domestic product is about 28 percent lower than it was four years ago. The official unemployment rat is 27.5 percent (as though the decimal point matters, given the poor quality of the data). The unemployment rate for young people is about 60 percent. Nonperforming loans continue to rise. The privatization program continues to fail, in part because of an absence of bidders."
He then goes on:
"…Despite thousands of years of failure of welfare and socialist states, the siren call of immediate gratification often trumps rationality."
Of course Paul Krugman blames "austerity" as usual.
While I'm no fan of the IMF, or the EU for that matter, don't you think Greece shares most of the blame for it's position?
Meanwhile, Greece continues its tragic economic tumble though.
It's just too bad politics trumps economics and the so called "leaders" of countries can get away with spending and borrowing until they take their countries to the brink.
How much longer can we continue similar policies here at home before our "crisis" hits?
Maybe Greece and The Bahamas should take a few pages from Switzerland's playbook?
