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Germans Oppose Bailout for Greece (National Post, Monday, February 27, 2012).

February 28, 2012

The Germans voters got it right for the wrong reason. They simply don’t want to “rescue” Greece. Well, it is morally wrong not to want help distressed friends in the European Union. But, the Germans, unknowingly, got it right economically. According to an emerging economic theory called Behavioral Economics, bailing out others will create more economic distress, not less. Bailing others IS what creates recessions and unemployment. Take the G20, that bunch of mediocre Classical economists, so average that they never even heard of Behavioral Economics even though its founder won a Nobel prize in economics in 2002! These morons decided that the solution to the European economic crisis is to ask for more bailout money from the hard-working European tax payers!

Let me take this opportunity to educate those of you who want your country and your personal finances to work like magic: Borrow lots of cheap money, but never borrow money to balance your budget or pay off your mortgage. It will lower your standard of living and will destroy the economy in the long run. It is economically healthier to borrow a lot of money as long as you use the borrowed money to start a good business, pay your taxes,  school yourself, train people and build businesses and industries.

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