Another good column from Adam Creighton:
If Greece proves unable to pay, a likely outcome, European authorities will have to print money or levy taxes to bail out their insolvent public institutions. It is iniquitous that ordinary people are forced, unwittingly, to bail out feckless decisions of elite financial institutions...
Losing money on bad loans is a tenet of free markets, more important than short-term losses. It provides the incentives to allocate money efficiently and prudently throughout the economy, underpinning long-term prosperity and market integrity.
