Citigroup (NYSE:C) Chief Economist Says EU Governments are “Wimps” in Response to Greek Sovereign Debt Bailout

Chief economist of Citigroup (NYSE:C) Willem Buiter said governements in the European Union are “wimps” because of how long it’s taking them to bail out Greece.

At the Council of Foreign Relations in New York, Buiter said, “If the European area governments weren’t such wimps, they would have done it right away. It’s been a disgraceful episode for European heads of state, especially in Germany, for the narrow-minded parochialism that has been displayed.”
 
Parochialism? Is Buiter a screwball? There’s nothing petty or selfish at all about the response to Greece debt, which has come from irresponsible spending of the socialist Greek government which has created an entitlement culture which can’t be sustained.

What’s petty about taking their time and seeing how deeply the crisis really is, as they know there are several other countries waiting in the wings which they may have to deal with when Greece is bailed out.

It’s doubtful the EU can bail out these other countries, as Greece is the smallest of them all, and the cost, not only in money, but in consequences, is more than can be born by them.

This is no longer just a Greece problem, and the EU knows it. Portugal, Italy, Ireland and Spain are also close to the edge, and if they fall the problem is much larger than Greece, and probably insurmountable.

As Margaret Thatcher once said, the problem with socialism is it eventually runs out of other people’s money. That’s what’s happened with Greece, and is happening with other nations in the EU.

The idea of just bailing out a country because of irresponsible practices and unsustainable perks and benefits, isn’t something that can be simply jumped into.

Look at the response of the Greek people who largely believe all this is owed to them, and the idea of having to be disciplined and and responsible doesn’t even seem to be part of the matrix of their culture any more.

This isn’t being “wimps,” as the Citigroup economists implies, it’s understanding this will never go away if the root of the problem isn’t dealt with, and that’s the entitlement culture created from these socialist governments.

Until that’s dealt with, it won’t matter how much money is thrown at the problem, it’ll return again and again in the future.