A Greek Portfolio Manager Tells Us The REAL Reason Greece Can't Fix Itself


Photo: Poulopoulos Ioannis, Flickr

You hear a lot of vague rhetoric from Greek politicians, and you obviously know what the rowdy “Greek street” thinks of the situation there, but you don’t often here from the professional “elite” class on what’s wrong with the country.So we asked a trader/portfolio manager (who prefers to remain anonymous) at a Greek bank what he thought of the situation, what Greece had to do, and why reform wasn’t happening.

His answer was interesting:

We want the Greek economy reformed.

An end to the of unimaginable waste of taxpayers money, through gross fund allocation inefficiencies, political favouritism, vote mongering, cronyism and corruption.

A much smaller and reformed public sector, that serves the taxpayers best interests and needs and not
those of political patrons.

A pursuit and prosecution of presently wide spread tax evasion practices.
The above would immediately provide us with a considerable primary surplus, enabling us to keep repaying our debt, an obligation we wish to honour.

It would also immediately enable our creditors to grant us with debt schedule extensions and / or other term revisions that would make repayment less onerous.

This was the part that interested us most though:

Unfortunately it appears that the average Greek, does not view things the same way.

At least in the view of this Greek elite, austerity is achievable, and it’s the masses that don’t want to end the corruption and tax evasion — that’s a view which, incidentally, puts him in line with much of theinternational community outside Greece.

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