Mark Mobius, at least smi-hypocritically, joins the camp of those who still dare live in reality. Bloomberg reports that the Templeton Chairman said Greece should be allowed to go bankrupt as that would be the best way to sort out its finances. “If we pour piles of cash into a country where corruption extends to top government officials, we won’t see any reforms,” Mobius told the Ljubljana based paper. “There is no other solution than to stop financing Greece with creditors taking responsibility and suffering damages, so countries should help them, not Greece, limit those damages.”
Funny he should say that: the US has already poured piles of cash (and we mean piles) into a country where corruption, cronysim, and Wall Street favoritism defines the entire system. Does that mean that the US should have been allowed to go bankrupt too? Of course, one implication of this "fresh start accounting" would have been that Templeton and all other comparable firms, even those doing god's and Zeus' work, would be long insolvent. Will the Chairman care to adjust his statement.