Argument: Greece bailout adds to debt, does more harm than good
Jim Rogers, chairman of Rogers Holdings said in an interview with CNBC in April of 2010: "The way to solve this debt problem is not with more debt. The idea that you would solve a problem with too much debt and too much consumption with more debt and more consumption, that defies comprehension," Rogers said.
"Bailing out Greece is not the answer". Allister Heath. February 2010: "A rescue would fill the City with joy in the short-term – but would cause huge damage over time."
John Markman. "Let Greece default on its debt." Market Watch. April 28th, 2010: "If the Greeks try instead to survive off EU and International Monetary Fund loan guarantees, analysts believe they will find itself in the impossible situation of needing up to $25 billion a year more every year. That would require leaders to slash the number of public jobs and infrastructure by more than half, shrinking the economy and withering tax revenues down to a fraction of current levels.
That approach creates what academics call a "debt spiral," a lethal condition that could lead to civil unrest, impoverishment of the middle class, extreme instability and a contagion that could imperil Europe. Ultimately the EU will realize it's a lost cause and expel Greece when it's too late.
In short, it's time for all parties to accept the mistakes of the past, stop sharing needles like debt junkies, and move on. It won't be easy to do it now, but it'll be harder to do later."
"The European Union's Greece Bailout Problem." US News & World Report. May 2010: "It’s a common-sense question: How does spending more solve the problem of too much spending? How does taking on more debt solve the debt problem?"