News. April 26 (Bloomberg) -- Greece is unlikely to be the last euro nation to need an International Monetary Fund bailout, with Ireland, Spain and Portugal “conspicuously vulnerable,” said Harvard Professor Kenneth Rogoff. (Dr. Rogoff discussed extensively financial crises in his excellent book This time is different.)
My point. I follow this story to make an important point, in my view. In his book, Dr. Rogoff reviewed many measures to asses financial risk. This is what happens when countries promise great social programs and they cannot afford them because they do not generate the wealth to pay for them.
The risk is not only financial collapse. The results are high unemployment, loss of purchasing power, and people discontent.
Governments do not know when to stop giving to their citizens. They mean well, of course. The result, however, seems to be the opposite of what it was meant to be.
George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest
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