[andy_ppp]

And you are proved wrong by the fact Greece's government clearly was (still is?) "an unsophisticated or under-informed borrower". I mean the outcome of this borrowing speaks for itself.

When I take out a loan a bank usually asks for collateral but these loans to Greece are unsecured and not worth paying back. The banking system should have been left to fail but instead we live in this world where governments bailed them out. Capitalism for the poor and Socialism for the rich.

[pvg]

No, the fact someone takes out loans they can't repay doesn't 'prove' they don't understand the terms of the loan. I don't think any of the major actors in this look particularly great but it's not like the Greek government found a giant bag of money on their doorstep one day and nobody told them it came with terms.

[pm90]

Wait...what? The Greek govt. that took out the loans was incompetent, sure. But so were the lenders. Making a loan is taking a risk for both the lender and the receiver of the loan. It is in both of their interest to ensure that the loan will be repaid.

[RobertoG]

So, I can lend money without worry and it always will be repaid?

And not only that, I will be morally right. What amazing times we live.

[pvg]

I'm afraid I don't follow this trenchant rejoinder.