When bailout is not an option

The collapse of Long-Term Capital Management should have been a warning sign, alas a few billion dollars in bailout money patched things up to ignore the broader picture.

The collapse of Lehman Brothers should have been a warning sign, alas a few trillion dollars in bailout money patched things up to ignore the broader picture.

The collapse of Iceland should have been a warning sign, alas devaluing the currency did wonders. Interested in vacationing in Reykjavik? Bargain hunters rejoice.

Now we are onto Greece. Devaluing the Greek currency isn't an option. There is none. Signs are finally pointing into the right direction, but it may already be too late to avoid a Europe-wide (and soon a global) crisis.

Privatize benefits while costs are being socialized doesn't work—at least not for long.

It's so obvious, it sounds trite. It's also so difficult to do away with precisely because many rich have benefited from the current sorry state of affairs and are just fine with keeping things the way they are.

What goes for the financial system also goes for the planet—just that bankruptcy, or a bailout, isn't on the table.