This article published in RealClearMarkets is a classic. Among the great points made:
1. This is not a bailout of Greece, but a bailout of banks around the world that have exposure to Greek debt.
2. This bailout sends a bad message to investors that all govt debt is safe (moral hazard anyone?).
3. “There are no entrepreneurs, businesses and jobs without capital, but thanks to the privileged status that governments enjoy in the capital markets, there will be less and less capital for those actually interested in creating wealth with it.”
4. Govt spending amounts to capital destruction.
5. “…free markets have been trying to rid the economy of banks since at least the early part of the 20th Century, but with banks nothing in not heavily regulated – meaning politically protected – their natural path to obsolescence has been blocked.”
6. “Economies can’t advance without failure, and if fear of near-term pain means we can’t even let Greece fail, we should all get ready for many more years of economic hardship.”
Tamny at his best: Greek Bailout.