When the housing bubble went up, there was much criticism of predatory lenders, preying on innocent borrowers. In other circles (a circle in which I spend a lot of time) there was also criticism of people who borrowed more than they could afford. People went into mortgages they could barely afford in good times, let alone tough times.
When the tough times came, the roof was too expensive.
Something similar has been going on in the Greek crisis with the Eurozone. In this case, the blame went to the Greek people for demanding (and receiving) services they could not afford. Less blame, at least as it seemed from here, went to the lender countries and institutions that lent Greece the money to pay for those services.
Only a mean-spirited person would berate the family losing their house for their prodigality. By the same token, now is not the time to explain to the Greeks that they should have promised less to their citizens. It is time for the parties involved to figure out how to resolve the issue. The Tsipras government has to figure out how to lighten the burden of austerity and still keep the creditors at least a little confident that Greece can meet its obligations. That is no small task, when the government was elected on the basis of relieving that austerity.
But the Grexit won't help anyone; the Eurozone should not welcome a crack in the already-fragile facade of European solidarity. The Greeks will really see austerity if they run out of cash and the Eurozone; a return to the drachma would be a nightmare.
It is to the best interest of both parties to keep the self-righteous rhetoric to a minimum and figure out how to assist the Greek people without subsidizing profligate spending . . . or predatory loans made with arrogance in the belief they will be guarantees. Just like the housing bubble.
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