American businessman and champion of economic freedom Steve Forbes has written an important article entitled "For Whom the Greek Bell Tolls." It should be required reading for all investors.
Mr. Forbes brings up many excellent points, some of which we have emphasized previously in this blog, such as the importance of pro-growth policies rather than "austerity plans," as well as the problems with lavish pay for an ever-expanding force of government employees (some of the details he adds to this discussion are breathtaking).
He also provides some details about the primitive state of property rights in Greece, and the lack of effective procedures for registering property. This is an extremely important point, and one we have discussed before. We recommend all our readers take the time to visit this previous post and watch the excellent video embedded therein, in which Peruvian economist and advocate for property rights, Hernando De Soto, explains how the ability to formally register private property is at the heart of the rule of law and the ability to advance economically.
For those who wish to understand why Greece is such an economic basket-case (in spite of the fact that people of Greek descent are as innovative and successful in other countries as the members of any other group of human beings), Steve Forbes' article is highly recommended.