Germany Is Not Washington; Greece Is Not Rhode Island

Photograph by Louisa Gouliamaki/AFP/Getty Images

Let’s make one thing clear: Greece is the Rhode Island of Europe. Its population and economic prowess pale in comparison with its neighbors in the EU. But even a pipsqueak can still cause plenty of damage, which is what Greece’s bonds threaten to do to the European banking system.

—Andrew Packer, The Real Reason Greece Keeps Making Headlines, 17 June 2011

See my interview at Bloomberg TV+ with Professor Rajan of the University of Milton Friedman to assess how the IMF did not “nail” “pipsqueak” Greece early, and often. Pray tell: DSK campaigning?

I will keep this short. Europe has changed since 2:00 a.m., Monday EDT. The smartest people I speak to become unhinged when someone equates Athens to Providence.

Banking is different in Europe. Americans, in our Jacksonian fog (see, Robert V. Remini), are clueless.

Germany is not Washington; Greece is not Rhode Island. Discuss.

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