The Quiet Financial Revolution Begins
Mohamed A. El-Erian
JUN 8, 2015
LAGUNA BEACH – Steadily and indisputably, the financial services industry – with which we all interact, whether as borrowers, savers, investors, or regulators – has embarked on a multiyear transformation. This process, slow at first, has been driven by the combined impact of two sets of durable forces.
Their economies are mismatched, their temperaments even more so.
Stores are taking out anti-looting insurance. Public hospitals are making contingency plans for operating when money dries up. More than $5 billion was pulled from bank accounts in April alone by companies and individuals.
Euro-unraveling contagion is now far less likely. One thing is sure: If a deal is reached with Greece, it will only be the prelude to the next crisis in a few months or so.
Fix the country, whether inside the euro or out. Get foreign corporations to put their money in Greece. You want to try the Putin route, with Gazprom stepping in for the I.M.F., go for it!
We’re off your back now — so find a way to make Greeks believe in Greece again without the ready excuse that Berlin, or the International Monetary Fund or the European Commission is to blame.
The inevitable Greek implosion was followed by austerity measures whose symbol was Germany. These failed to offer Greeks a positive vision of what all the sacrifice might produce.
The consequent anger created Syriza and its election victory and incoherent promises of a new way forward. Everyone is now caught in the web of their own contradictions.