Joseph Stiglitz has called on Greece to not back down to foreign speculators who are meddling in their market and instead take the fight to them.
Stiglitz has compared this situation to the one that faced Hong Kong in 1997 and 1998, when speculators targeted the economy in hopes of bringing it down and making a mint.
“What Hong Kong did in response was to raise interest rates and intervene in the stock market. They burnt the speculators and Europe needs to do the same thing,” Stiglitz said.
Currently advising Greece on its debt crisis, Stiglitz’s employers are up against a wall. Shorts against the Euro are growing, and while Greek CDS spreads have remained stable today, the debt crisis continues to spread across Europe’s Mediterranean underbelly.