"After the Greek Default"

Martin Feldstein calmly and concisely explains just how much trouble Greece is in.

So Greece faces a triple challenge: the fiscal challenge of cutting its government debt and future deficits; the price-level challenge of reducing its prices enough to wipe out the current trade gap; and the wage-productivity challenge of keeping future wage growth below the eurozone average or raising its productivity growth rate.

One would hope that Greece will be a cautionary tale for many generations. But if history teaches us anything it is that human folly is very deep. And it repeats.

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[TheBigHenry]

As Big Al quipped, "Two things are infinite, the universe and human stupidity ..."