Niall Ferguson Says 100% Certain Greece Will Default

Niall Ferguson Says 100% Certain Greece Will Default

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June 14 (Bloomberg) -- Niall Ferguson, a history professor at Harvard University and a Bloomberg Television contributing editor, discusses the outlook for the Greek debt crisis. Ferguson, speaking with Erik Schatzker and Deirdre Bolton on Bloomberg Television's "InsideTrack," also talks about the U.S. economy. (Source: Bloomberg)

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The video can be watched through the link provided. It's a ridiculous situation. European nations have spent billions on a country that is set to default, no matter how many billions are pumped into it. Why should we, the people of countries that have their balance sheets in order, pay the price for the failure of others? I do realize that most of the Greek population have no role in this crisis, but in my opinion, it's beyond ridiculous that an increasing number of people in my own country seek assistance of food banks while we waste billions of Euros on a country that is well beyond savable. Mark my words, we end up with a situation in which Greece goes down the drain together with the billions of aid and eventually we'll pay the burden. A burden which grows bigger and bigger when attempts are made to rescue Portugal and who knows will follow.

Meanwhile the banks continue making staggering profits. A perfect recipe for disaster not? There's a limit to what people can take and as soon as basic needs are being threatened and unemployment skyrockets, people will rise up against the corruption. I've said it before, I think that history is in the making and the revolution against the corporate machine is to start in Greece, when the country defaults and massive chaos breaks out.

The Arab Spring caused a domino effect throughout the Middle East - but the chaos that is yet to come in the Western nations will be of an extent that makes the Arab Spring look like a minor event.

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Just get it over with already...

Am I the only person that wants things to get worse for a bit so they can get better?

Niall Ferguson is a neo-liberal douchbag.

However he is correct on this one, anyone can see that.

Is this the first Western Nation in which the Capital of Capitalism falls?
Are we now ready to accept the fact that a system based upon greed, haves, and have nots was undoubtedly unsustainable and against man's better nature?

Are we ready to initiate change in our hearts?

reply to post by TheOneElectric


I've been saying for a couple of years now that capitalism in its purest form is unsustainable. The fact that greed and personal interests are part of human nature and hence, always interfere with the interest of a nation as a whole make pure capitalism a model that is proven to be inviable in the long-term. A good example is the pharmaceutical industry, it's beyond ridiculous that this industry is driven by financial profitability, which conflicts with the true purpose that they should pursue: keeping us healthy. Why cure cancer when you individuals have an interest in making billions in profit on keeping it a terminal disease. The same applies for bankers: they are taking reckless risks to fill their own pockets as personal interests once again interfere again with the interest of entire nations.

You can't even blame them, because it's part of human nature. You'd also choose your family over another, but it just makes clear that pure capitalism is a lie sustained by greedy individuals whom have greatly enriched themselves by creating bubbles that are not rapidly bursting.

I'm not so sure.. I believe we'll see an outcome from the Merkel/Sarkozy meeting tomorrow that will pave the way to push/shove and undemocratically force the Greeks down whatever path the French/Germans agree.

reply to post by boncho


The suspense is killing me, just want things to hurry up and collapse too at least then the only way is up!

reply to post by Mdv2


Anyone who believes what we have today and for the past 70 years here in the Western world is actual Capitalism, is a complete moron. Perhaps that is being a tad harsh but it is the simple fact of the matter. To blame capitalism for these problems is like blaming the curtain because someone left a lit candle next to it and the house burned down.

Why did Greece have such bad economic problems? Well besides the fact of a runaway entitlement state they also have a heavy 'black market' where no taxes for goods and services are paid. The people like to collect public money but do not like to put into it. Now we have avowed Socialists, Communists, and Anarcho-syndicalists protesting in the streets because of a failed economy which could have been avoided. If the people of Greece did not want to pay ridiculous taxes than they should have told their state a long time ago that they do not want a welfare society with bloated bureaucratic expenditures.

So how can capitalism be blamed for this when the variant of capitalism we have had this past 70 years has been that of a Mixed Market Economy with large state intervention and the creation of an enlarged military industrial complex here in the US. Government and corporations work closely together to guarantee that these large businesses are free from competitive practices that the free market place would create. By big business promising to 'help the people' and 'promote progressive causes' the left and right gave them promises that they would have special protections. These special protections have largely, but not completely, come in the form of protective regulatory policies designed by bureaucrats and administered/directed by the leaders of the businesses they are regulating.

Add to that we have the great build up of concentrated capital not only socio-economically into the hands of bankers and businessmen who can lobby politicians along with create favorable tax codes which are too complicated to understand that only their army of tax lawyers can figure it out which gives them an advantage over the rest of us but also the capital is being concentrated geographically too. With the rapid urbanization and transnational reallocation of capital, investment, and business locations located within a few select cities managing their entire national and supranational business policies and practices from a distant location their ability to properly understand the regional economic and social needs have been destroyed.

When we add the unfavorable business practices with the rapid centralization of bureaucratic governance into a more authoritarian state located in a distant capital we lose the flexibility of governmental laws, government loses its connection to its citizens it is supposed to represent, and the transparency is lost in the red tape. Politicians ultimately begin to micromanage the economy which leads to inefficiency which inevitably led to the situation we are in today.

Had Europe not gone the way of micromanagement, centralization, bureaucratization, and social corporatism we would not even be discussing this problem right now. So instead of trying to understand the root causes of the problem you would rather point fingers at a system which has been abused and turned on its head for the profit of a select few. Capitalism does not ultimately lead to the centralization of wealth and wages, had we as citizens been freely able to compete with the wealthy banks and businesses then more wealth would be with more individuals. But since just opening and operating a manufacturing plant has become outrageously expensive the small and medium sized businesses must close down due to taxes, regulations, and bureaucracy so that only the big may survive.

And who creates the unfavorable and destructive atmosphere? Government. Who is the only one with the power to do this? Government. So why is it the market you hate rather than the government for perverting, distorting, and manipulating the market? You tell me.

reply to post by Mdv2


Actually, mixed market economics where the government follows Keynesian policies is fundamentally unsustainable. Same with communism. What about trying to reduce government spending instead of increasing it?