More about the Greeks (and some others)
In an earlier post today about a Vanity Fair article about Greece and its ongoing financial morass, I highlighted a question posed by the writer of the piece, Michael Lewis:
Even if it is technically possible for these people [Greeks]to repay their debts, live within their means, and return to good standing inside the European Union, do they have the inner resources to do it?
The last phrase of this question — do they have the inner resources to do it? — won’t stop echoing through my mind. Could it be my (blogger) conscience nudging me to recall something else Lewis said in the Q&A interview with him that accompanies his article? He was answering a question about a rather sizeable ongoing financial mess of another country, the United States.
Specifically, Lewis was asked if he could foresee a scenario in which the US Treasury goes bankrupt.
Excerpt of his reply (that begins with “Yes”):
…It’s not that hard to see us getting to a moment where we are essentially restructuring our debt. I think it is a long way off, but how can it not happen? We are so indulged by our creditors. Even though we have grotesquely mismanaged our financial affairs, people are willing to lend us money on terms that they would not lend on to anybody else in the world. It’s unbelievable to me that the U.S. Treasury can borrow 10-year money at around 2.5 percent.
The Chinese are willing to lend back to us all their surpluses basically for free, and we keep running these deficits. The benefits are just too great to our society for us to turn away…
So that question about having the inner resources to clean up your act is also being posed by Lewis here, more obliquely, about the US and its citizenry.
(Blogger) conscience clean now.
It’s all Greek to him: Michael Lewis
When it comes to figuring out complex things in today’s world, Michael Lewis has proven himself better than most at doing so. Along with this, he has an uncanny sense for the perfect doorway into a narrative, and an eye (and ear) for the telling detail that raises the bar to new highs.
The reading public must agree — most of his ten or so books have made the New York Times bestseller list (see Vanity Fair bio and Wikipedia). And his 2006 book, “The Blind Side,” was made into a hit movie of the same name that earned an Academy Award nomination for Best Picture (2010).
But coming away from reading the more than 11,000 word feature about Greece by Lewis in next month’s Vanity Fair, I was struck by the series of questions he posed — and left unanswered — in the piece’s final paragraph (“Beware of Greeks Bearing Bonds” Oct 1, 2010).
Two, for example:
Will Greece default?…
Even if it is technically possible for these people [Greeks] to repay their debts, live within their means, and return to good standing inside the European Union, do they have the inner resources to do it?
To research the Vanity Fair article, Lewis spent some time in Greece,and interviewed some key figures and government workers in the national financial drama underway there. It makes for interesting reading — the full article is here.
Also interesting is the magazine’s companion Q&A with Lewis about the piece. Here you can read some opinions he has of the possible economic prospects of various other countries in Europe, in particular Germany.
My favorite segment was a question asking Lewis to compare specific European countries to major baseball teams in the U.S. Of course, unless you’re a baseball fan, the metaphoric word play is illusive (and I can’t be of much help here — the sports world is certainly Greek to me).
One sample, though, was more explicit. His description of Italy — he compared the country to the baseball team The Marlins — is generous and apt, I think. He said:
Even though Italy is in financial trouble right now, like the Marlins are always in financial trouble one way or another, it still somehow feels like a successful place. Italy is this giant wild card; they can win the series at any point.
Italy certainly can do with a good word just about now. And maybe I’m biased, but I do favor such optimism. And I do so hope Lewis is as astute about this as he has been about so many other things. Vediamo.
