Boom Bust Season 2 Episode 112 Galbraith and Magnus: Greece Cannot Pay Debts, Europe Surprisingly Ad Hoc and Dysfunctional

In season 2 episode 112 of Boom Bust, the focus is on the ongoing debt crisis in Greece and the dysfunction within the European Union. The episode features interviews with James Galbraith, an economist and professor at the University of Texas, and Lars Magnus, the founder of a financial consulting firm.

Galbraith argues that Greece simply cannot pay back its debts and that creditors should accept a restructuring that would allow the country to recover. He also criticizes the European Union for its lack of a coherent strategy to address the debt crisis, describing it as "ad hoc and dysfunctional."

Magnus agrees that Greece's debt is unsustainable, but takes a more skeptical view of the potential solutions. He argues that a restructuring could lead to a "domino effect" of debt defaults across Europe, and that creditor countries such as Germany are unlikely to take on the political risk of forgiving Greece's debts.

The episode also discusses the role of the International Monetary Fund (IMF) in the Greek debt crisis. Some commentators argue that the IMF has pushed for harsh austerity measures that have only made the situation worse, while others argue that without IMF support Greece would have defaulted years ago.

Overall, this episode of Boom Bust provides a nuanced look at the Greek debt crisis and the challenges facing the European Union. While there may be no easy solutions, the show's guests provide valuable insights into the economic and political factors at play.