Greek Contagion

As we watch the rioting in Athens, it raises the question - what if we can't get what we want?

Living beyond your means can't go on forever. Either individually or as a government. Borrowing from savers abroad propped up a generous "welfare" state (I like the term "benefits" state, but whatever) now the savers are getting scared and don't want to lend anymore. That means taxes have to go up to pay them back for the past loans and reduced benefits in the here and now. If you have a lot of government employees that means wage and pension cuts.

The tough part to come to grips with is the realization that you didn't actually produce enough in your capitalist system to really merit the lifestyle you led (or were led into leading). This causes some angst. What do I do now? This is not what I expected. Who is to blame? Who benefitted more than me that I can blame? Etc.

I wonder how each of us would react. If you believe its all about your own effort and bootstraps, you will be angry at others for free riding. If you think society/government has some collective responsibilities, you will still be angy that it is failing you. So the default position will be anger at someone. Being smart enough to see that neither world view is exactly on spot is a rare condition. And who wants to believe that there is no consistent workable worldview anyway?

I think I may continue to buy US assets, stocks, etc in the pension fund. But I have no illusion that any of these assets are "real". They only have value if everyone (or most everyone) plays along.

I think its also good to work out in troubled times. If you can't control things around you, at least you can try to squeeze out one more rep or shave a few seconds off your best time.

We shall see.