Saturday, 4 July 2015

Greece, a lesson in leadership, and the definition of 'borrow'

The financial situation in Greece is dire, and while this weekend's 'yes' or 'no' vote may have very different outcomes for the long run, one thing is sure: recovery will be hard and long, because successive Greek governments have made a series of popularist decisions over the past decade refusing to cut back, progressively increasing the deficit, and thereby pushing the country and its people into a deeper crisis.

Politicians (not just Greek) should take cues from business leaders. Leadership means tough decisions. 'You need the mental capability and tenacity to knit your inferences into something meaningful, and the imagination to think of new options. And you need the courage to go on the offensive based on your subjective judgments. You can’t be a wimp—make the tough calls.' (

And the Greek leadership didn't. They borrowed beyond their means. But 'where did the money come from? The Greek government and the country’s major businesses borrowed heavily on the international money markets. Among others, they borrowed from French and German banks.' (

They did what? Yes, they 'borrowed', in other words 'took and used (something belonging to someone else) with the intention of returning it'. (Google) And the big question on everyone's (or at least the creditors' mind right now); whatever the vote, 'yes' or 'no', will Greece pay its debt back? Ever? In full?

No comments:

Post a Comment