Jim Rogers isn’t cheering news of financial support for Greece.
Europe would be far better off in the long-term if Greece were rather left to go bankrupt.
“The Greeks have never lived within their means, and I suspect this time they won’t either, until they’re forced to by either bankruptcy or by someone just refusing to give them loans,” Rogers said.
“A few years ago the French came up with some phoney bookkeeping that was so absurd that even the Italians were stunned… and the Italians have been using phoney bookkeeping for centuries. This is rampant in Europe,”
Thus supporting Greece only further entrenches moral hazard. Every country will feel little pressure to reign in government spending that exceeds ‘official’ targets.