The Bankwatch

Tracking the consumer evolution of financial services

Greece and what it means

I cannot but help believe there is a deeper problem relative to the situation in Greece.

Three people died in a central Athens bank that was set ablaze by Greek protesters on Wednesday during a march against government austerity measures, aimed at saving the country from bankruptcy


At one level it is a financial crisis and it should get sorted out with banks involved taking losses eventually as debt will have to be written off or at least placed on such terms as to make repayment unlikely.

But this situation is altogether different and deeper than Argentinean or Thai defaults of the past decades.  Here we have a population with the same passport as Germans, French or British killing people and blaming the IMF for their own profligacy.

The world is in a state of transition between old style nations (nation states) with finite borders that largely contain their problems internally insulated from the world to a world of globally interconnected market states where responsibilities are much fuzzier and it is all to easy to blame others for ones own misfortunes.  This new market state world has an objective of enhancing the opportunity of individuals versus the previous state that was designed to enhance opportunities of groups including unions, the aged, youth etc.

This new world brings responsibilities and accountabilities with it but the Greeks are at the front end of the change and not liking it much.  The implications for Europe and their responsibilities in all this is also embarrassingly clear too.

All of this makes it hard for banks to operate effectively and responsibly with these upheavals in financial markets which have no clear end game.

Written by Colin Henderson

May 5, 2010 at 10:30

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