I’ve hesitated to weigh in on Greece and the ongoing debt crisis. It’s a complex situation and I don’t think I have much to contribute. But one thing I do know – debt always has two sides, and those two sides are not well reflected in the current debate.
Debt requires two parties – a lender and a borrower. “Debtor and creditor are two sides of a single entity” as Margaret Atwood writes. “One cannot exist without the other”. Unsustainable debt only happens when there is a failure on both sides – a cavalier borrower, and a lender that is either unscrupulous or hasn’t done due diligence.
When a debt becomes unpayable, as Greece’s undoubtedly is, the responsibility for that is shared. Greece has borrowed unwisely, but banks have lent unwisely. Since both sides carry some responsibility for the problem, both sides need to make sacrifices in putting it…
View original post 337 more words