Friday, February 6, 2015

Mancrush on Yanis Varoufakis

Since he has been rocketed into the limelight suddenly, I think I have a very strong liking to the new Greek Finance Minister.

"The problem of insolvency for 5 years has been dealt with as a problem of illiquidity."

I think he took on this interview in a fantastic manner, even with the interviewer cutting him off, simplifying and reducing this statements and also addressing him in very condescending tones.

It's not to say that I agree with the solutions and measures that he is proposing because I honestly do not know enough of the background story yet. Unfortunately for me, the euro crisis was happening when I was a care-free student and the biggest concern in my life was if I was going to wake up to attend morning classes. I definitely have more reading to go to understand the bigger picture of what is happening in Europe now.

However, I do agree with his diagnosis of the problem. Throwing money at an indebted person doesn't solve anything. It doesn't work for people, it doesn't work for corporations and it sure as heck wouldn't work for countries. Why did people think it would work in the first place?

I was just reading the newspaper today that interviewed Zurich Life's CEO. He said that, "Some structured products are so complex, honestly, and I have a financial degree." My guess is that no one really understood the problem.

I am very interested to see how things turn out and what reforms Greece will undertake to revive their economy.

1 comment:

  1. Hi GMGH,

    What a painful interview to watch!

    I find him very luo-suo...didn't answer directly. But I guess that's how politicians answer questions. You elaborate, discuss the questions, talk about the pros and cons and then considered it answered. It's a safe way.


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