The police and demonstrators clashed Wednesday in Athens during protests against austerity measures passed by Parliament.

Markets rallied globally, but John Kolesidis’s front page photograph reminded me of tragic open water rescues, where rescuer and victim, in their panicked states, pull one another under the water and both perish. Government officials who are locked in this battle have extra protections, diving aids as it were to carry the analogy further.

Regardless of the short term measures, it looks likely that Greece will still end up underwater. From the article, interviews with two noted economists:

“If Europe comes together with an appropriate framework, that will enable a default to be avoided,” said Joseph E. Stiglitz, the Nobel-winning economist. “But there’s every sign that Europe won’t do that, so the likelihood of a problem down the line is very significant.”

Kenneth S. Rogoff, a former chief economist at the International Monetary Fund, who is now a Harvard professor, said the Greek vote and the infusion of aid would only buy a little time.
“It’s certainly kicking the can down the road,” Professor Rogoff said. “Greece is basically being bribed not to default. But as long as Greece doesn’t grow briskly for a sustained period, it’s in hot water.”


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