Moral Hazard Anyone?

If the European Central Bank does indeed bail Greece out, what's to stop Portugal, Spain, and Italy from expecting similar bailouts. A reasonable perspective is

The easing worries about Greece came on scattered reports about plans for a rescue. Even if the country's financial wounds are bandaged, however, investors will still face questions about other strapped European countries.

Comments

[Kent Paul Dolan]

Supposedly Greece would be required by the rest of the EU to clean up its financial house for this bailout to occur. Here's a wild thought: how about if Greece cleans up its financial debacle even more stringently, and bails itself out instead of looking for a handout?

xanthian,
Kent Paul Dolan, LCDR, USNOAA Corps, retired.
xanthian@well.com