Crisis in Greece: Would you lend money to a person who can’t pay?

Lots of debate around who is the victim and who is the bad guy in Europe nowadays thanks to the financial crisis gripping Greece and, as a consequence, the rest of the European Union. It seems to point to the underlying fundamental difference between the way creditors and debtors think which is not too different to the difference between the way capitalists and labourers think.

greek_financial_crisis_02

Hold that thought for a moment while we examine what’s really at work here on the surface. It comes down to the simple question even ordinary people with a bit of cash on hand face every now and then:

Would I lend money to this person?

The key to answering this simple question is in the result of an assessment as to whether or not said person is capable of paying you back.

In short, do you see in that person an inherent ability to honour commitments he enters into?

Obviously, Greece’s creditors saw that in Greeks — twice already as far as risky national bailouts go; and a third time perhaps if things go well in the on-going negotiations this week. See the irony in all this? Considering Greeks today are whining about the powers that be not giving them a break, it seems it is Big Bad Germany that actually finds within itself an ability to feel optimistic about Greece — a lot more than Greeks are willing to grant themselves!

In short, Germany is saying: You can pay us back if you do this and that. But the Greeks tell themselves: We can’t do those things. We are not capable of it!

Sounds familiar? It’s likely because you’ve probably heard a similar conversation between a rehab therapist and her alcoholic patient. Says the rehab therapist to the wino: You’re in this rehab program but the cure to your alcoholism ultimately depends on your ability to commit to certain measures. Alcoholics will always say they’ll comply — after their next drink, that is.

So let’s come back to the earlier train of thought — the idea that creditors and debtors think differently in the same way that sets apart the capitalists from the labourers. The fact is, creditors and capitalists see possibilities in the risks they take. But for the most part, chronic debtors and lifetime labourers are driven primarily by need and can’t see beyond that, much like the avarage wino can’t see a future beyond his next drink.

Is the cure to alcoholism more alcohol? Not a chance. Most addicts who successfully come out of rehab completely free of their demon substances are, in a lot of cases, dirt poor after they’ve lost everything to servicing their addiction. But the key word here is free — which means they are free to start over.

The only way Greece will get out of its predicament is if it is willing to start over. The alternative, of course, is to play ball subject to the rules. It needs to decide which path to take. Suffice to say, the biggest humiliation in being a debtor is to be in constant need of the resources of a person or an entity who you’ve come to regard as your biggest tormentor. As such, the challenge lies in imagining a different path. If you are in the midst of a baseball game and you suddenly want to play football, you need to get out of the field.

print

Post Author: benign0

benign0 is the Webmaster of GetRealPhilippines.com.

Leave a Reply

32 Comments on "Crisis in Greece: Would you lend money to a person who can’t pay?"

Notify of
avatar
Sort by:   newest | oldest | most voted
Dr
Guest

Would never lend money to anybody from the Philippines as you will never get it back. You will get the whole host of sob storiea like my mother died again, I need to pay for my Caesarian, I need to pay for my ofw medical etc etc. heard it all

Deep Throat
Guest

totally depends which Filipino individual or entity. You got banks now who do automated credit scoring to do that even in the Philippines.

It’s not like all Filipinos are in poverty nor cannot pay their debts.

marius
Guest

Ah, another classic.

“Not all Filipinos are like that”.

No shit, Einstein. Of course they’re not.

Doesn’t alter the fact that a MAJORITY of Filipinos have no clue how to handle money, don’t want to work for it, live beyond their means, have no plan for improving their situation, and think it’s quite OK to borrow money without paying it back.

Statistically speaking, about 80% of Filipinos do live in poverty; and most of the time, it’s because of the choices they make and they way they behave, not because they are inherently incapable of escaping poverty.

Not Tony B
Guest
Nice one! I once asked a Filipino guy – younger fellow – who was asking me for a bunch of free things like my shirts, shorts, shoes, etc., why he wanted these things from me. His answer was because I came from the States so I must be rich and have lots of stuff. I asked him if he was poor. He said yes. Yes? I asked “Why are you poor?” He thought for a moment and shrugged his shoulders and said “I don’t know” I asked “You don’t know why you’re poor?” “Well,” he said “I live in that… Read more »
Gibson the German
Guest
@ Not Tony, The Filipinne wage is so pathetic that it is a wonder anyone shows up at work. That is one reason why most Filipino’s live in poverty, not because they do not want to work. Working in a mall, for example, at a phone store selling all sorts of phones from APPLE I-Phone 6’s to Samsung Galaxy 6s and on down the list of cell-phones…the average Filipino makes P12,000 (E 260/USD $300) for the whole fuckin MONTH !!!!! A fuckin month!!! not a week, which would be pathetic enough, but an entire month. it is no wonder why… Read more »
Deep Throat
Guest

I agree on your part that certain Filipinos have no clue on how to handle. But not one can say that majority is the word because you dont have any scientific nor statistical basis for that.

I disagree though with your self made or make believe 80% Philippine poverty statistics. There is no scientific basis for it.

marius
Guest
DeepThroat: the official statistic is ~30% at or below the poverty line, defined as PHP1400/month. Now, GibsonTheGermans’s observation is quite correct: the cost of living in the Philippines is higher than average, and wages are awful. So I ask you: could YOU live on PHP1400/month? Could you even live on P5000/month, which is the average agricultural wage? If you have a couple of kids to support, is P5000 not poverty level? I challenge you to feed, clothe and school even one kid (plus yourself) on that income. The Philippines pretends there a mere 30% are “poor” simply by setting the… Read more »
Deep Throat
Guest
@marius, you are comparing apples and oranges. The basis is basic necessities not inflated necessities which common term is luxury. A family of 5 who earns at least P12k is above poverty level assuming that the family doesn’t go thru luxurious food or items. Of course if your assumption is that a family of 5 needs cellphone with corresponding load for each person of family to eat chicken every day, 2×3 cups per meal per person, buy the newest gadgets the 12k php with the minimum wage won’t cut it. All of which has nothing to do with minimum wage… Read more »
marius
Guest
GibsonTheGerman: I agree, the situation is a disgrace. I have a friend (a skilled guy) who moved back to the countryside because he figured he’d be better off there. Smart move. He was right. Because he’s a smart guy, and he’s one of the few people who can (a) count and (b) handle his money, he can have a decent lifestyle there. Any Filipino could do what he does. When the state is your enemy, the only rational solution is non-compliance. Co-operate with your neighbours; create your own economy. Ah, except this is the Philippines. Co-operation is impossible: there’s always… Read more »
walter p komarnicki
Guest

I’m not a moneylender, and I never lend money to friends, because it would be an insult to our friendship.
Friends give without counting the cost. I have a sister-in-law who’s a lawyer, who could have gone overseas but chose to stay here. She’s been cadged by heaps of her relatives, but never complains, because, as the saying goes, ‘what goes around comes around.’
But I’m terribly proud of her, and cherish her.

DFS
Guest

Money, so they say, is the root of all evil to-day.

I’d be happy if to just have money to lend, and decided not to.

OnesimusUnbound
Guest

Money, so they say, is the root of all evil to-day.

Not really, it’s the love of money. 🙂

Without money itself, financial transaction is way slower (just think of barter trading and you get the picture).

OnesimusUnbound
Guest

Greece should have not joined the EU in the first place if it’s unable to compete economically with other EU countries. The mere fact that Greece government presented inaccurate assessment of their viability to join EU shows something shady.

Gibson The German
Guest

All that remains is the misery of the people of Greece. The thieves are long gone.

Protect yourself at all times, evil is afoot and rarely travels alone.

d_forsaken
Guest

Don’t think money does everything or you are going to end up doing everything for money.

75Toro007771Hayden
Guest

It is easy to lend money…however, it is hard to collect from the borrower; especially , if the borrower cannot pay.

Ask those Government Banks in our country…how many foreclosures do they have.

Greece will survive like other bankrupt countries…

Robert Haighton
Member

Latest news is that there is an agree(k)ment.

Next important moment is this coming wednesday when the Greek government must approve all the measurements.

ice cube
Guest
Yes, if i knew someone would guarantee the debt and if i knew i was too big to be allowed to fail. — US banks circa 2004. There is more at stake for the EU, a most imperfect union. Letting Greece go [resulting in destab (hehe Filipino english word)] could result in more “terrorist” aka middle eastern islamofacist influences flooding into Greece. Also even if the Grexit does well it will provide a template for other debtors like Spain, Portugal, and Italy to pressure creditor EU countries for better loan terms. Greece is an existential question for the EU. Was… Read more »
Herman THE German
Guest
@ ICE, this is exactly what is happening here. The ‘HOISTING’ of bad ‘Private Debts’ incurred by the Bankers being ‘HOISTED’ onto to the taxpayers by the State. It is a new form of tyranny and it goes by the Horse-Dung catch-phrase “too big to fail’ and the people are either blinded by hunger or too stupid to see it. It happened in the USA to the tune of $1 trillion, then Ireland (at least they voted to pay for it, like frikkin IDIOTS ! it doesn’t get any dumber than the Irish situation, it just doesn’t ) and now… Read more »
Add
Guest
Again, to be repeated for the nth time, again, for the nth time, money is NOT the root of evil. Money is a thing; so, it is amoral. Good and evil can only refer to someone with intelligence; a thing has no intelligence. The correct cliché is: LOVE of money is the root of evil. In other words, greediness is what is evil. Anything in excess is what is not good. Eating too much is not good, drinking too much is not good, etc. But, it is a horrible situation not to have money. So the lessons from Greece for… Read more »
Add
Guest

Correction in 5
should read: for the last laugh belongs to the humble and the smart and quiet hard worker.

Gibson the German
Guest

@ ADD :
that is an opinion a lot of people may disagree with.

PT Barnum said it best: “There is a sucker born every minute.”, and it is a fact.

Add
Guest
@Gibson Well, it should be read then in the context that PHL has one of the highest rates of bad loans. When you dig for the details of these, you see car loans, home mortgages, and start-up businesses because nice offices were their priority first. Chinese and Koreans don’t care about elegant offices at first. They worry about streamlining their production so that they can asap roll out quality goods that could be deliverd on time. But then, you are also right. So, if you will allow me to rob you of your idea, I will make it as my… Read more »
bugsbunnyv
Guest
It is the expressed intent of international bankers to imposed upon developing nations such as Greece and even PH in mountains of debt. Loans are granted for such farcical projects like highways, which encourages the proliferation of cars, benefiting the oil companies. Turning no profit whatsoever, these projects ensure that the status quo of “industrialized” and “first-world” nations are protected. Money and national resources which would have been used for the economic and social development of our nations are instead transferred to external creditors. To make sure that there’ll be a continuous flow of money for the financial oligarchs, policies… Read more »
Gibson the German
Guest

@ Bugsbunny, you are correct, spot on…and it is done for a reason.

Evil pure evil.

ChinoF
Member

There seems to be debate on whether the one who’s responsible is the Greek government or the Greek people. Some say one shouldn’t bundle the Greek people with the bankers and politicians.

Add
Guest

Ppl, have you seen this >>> http://goo.gl/0MB5Hy

This is really getting to be too much. Noynoy and Abad, I think we will really see to it now that you both get locked up in jail after 2016 irrespective of who gets into power, you bastards.

Herman THE German
Guest
The attention should NOT be on Greece, it should be on ‘Deutshebanke’ of Germany. They are the ones on the hook for the ‘bad loans’ that have been made to the Greeks. The confiscation of Greek state assets is really a theft the Greek people should reject and never agree to. If they do not accept the new ‘austerity’ terms advanced by the E.U. Groupen, as they should not, then the German bank will implode and set off a far more gigantic systemic collapse than what is currently being experienced in Greece. THAT IS THE REAL STORY HERE. How ‘Deutschebanke’… Read more »
Not Tony B
Guest
My principle is easy: I don’t LEND money! I’ll either GIVE it to you, not expecting a payback – as a gift or… I’ll expect you to EARN the money you get from me. Why? Simple, very simple: Collecting on the debt. If I lend someone money, what really scares me is how will that person react when the time comes to repay the debt? Remember, there are no sure things in life other than the obvious sunrise, sunset, death and taxes so paying a debt scares me witless! The person may be honest and willing but is he able?… Read more »
zaxx
Member
If you lend a close Pinoy friend a book or a DVD, chances are you won’t get it back – UNLESS you come up with some desperate sounding reason to “borrow” it back. Pinoy’s generally don’t understand the word borrow. The mere fact that you have to ask the borrower to return the item is insulting enough. Money is a bigger deal. If a Pinoy asks to borrow from you some money – be armed with a contract with penalties for delayed payments – like confiscation of appliances. All the lending disasters in the Phil have ruined a lot if… Read more »
Raine
Guest

The logic is this: the one wants to lend the money has the gall to be angry once the lender wanted the money back. Even if there is an agreement.

not sure
Guest

Might be an option if I have goals to manipulate someone. Its a risk though and too many factors to think about.