.floatimg-left-hort { float:left; } .floatimg-left-caption-hort { float:left; margin-bottom:10px; width:300px; margin-right:10px; clear:left;} .floatimg-left-vert { float:left; margin-top:10px; margin-right:15px; width:200px;} .floatimg-left-caption-vert { float:left; margin-right:10px; margin-bottom:10px; font-size: 12px; width:200px;} .floatimg-right-hort { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 300px;} .floatimg-right-caption-hort { float:left; margin-right:10px; margin-bottom:10px; width: 300px; font-size: 12px; } .floatimg-right-vert { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px;} .floatimg-right-caption-vert { float:left; margin-right:10px; margin-bottom:10px; width: 200px; font-size: 12px; } .floatimgright-sidebar { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px; border-top-style: double; border-top-color: black; border-bottom-style: double; border-bottom-color: black;} .floatimgright-sidebar p { line-height: 115%; text-indent: 10px; } .floatimgright-sidebar h4 { font-variant:small-caps; } .pullquote { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 150px; background: url(http://www.dmbusinessdaily.com/DAILY/editorial/extras/closequote.gif) no-repeat bottom right !important ; line-height: 150%; font-size: 125%; border-top: 1px solid; border-bottom: 1px solid;} .floatvidleft { float:left; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} .floatvidright { float:right; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} Dear Mr. Berko:

Dear E.M.:

First, I must tell you that Goldman Sachs (GS-$156.70) was paid $310 million to help Greece hide $270 billion of its debt so it could join the EU in 2001. That’s like the American Medical Association hiding a terminal cancer diagnosis so 10 million patients could buy life insurance policies. But for GS’s cupidity and horrific greed, Greece would never have gained admittance to the EU. Goldman Sachs should be sued by the EU for aiding and abetting an alleged fraud that may cost the EU over a trillion dollars. This company’s deceptions make Bernard Madoff look like a Cub Scout who lost his way.

The bailout of Greece will succeed, but only for a little while. Greece’s problems require financial surgery that is unacceptable to its politicians and its citizenry. Its most daunting problems are enormous government pensions, huge government payrolls, out-of-control welfare benefits, a cornucopia of government work projects, plus elected officials and unions who believe graft is an entitlement.

Greece’s ailments cannot be cured by pawning the Parthenon and the Acropolis so Germany and the EU can fluff some pillows and cover the patient with a heavy blanket of euros. Whatever crutches Greece receives from Germany and the EU just delay the inevitable consequences.

Greece will fail because it will no more reduce welfare benefits, government pensions, eliminate graft, etc., than the United States would reduce Social Security benefits, Medicare and welfare or rein in congressional graft.

The German/EU solution will allow Greece a few years of breathing room. But all the rivets and welds are temporary. Eventually, the welds will break, the rivets will pop and Greece will flounder.

Members of the German Bundestag are voicing their objections to this bailout. Germany has a successful, long-standing commitment to fiscal impeccability. Stringent anti-inflation policies, a high savings rate, an incorruptible political class, careful fiscal policies and low household debt are imprinted in the German psyche. And the German people have little sympathy for their profligate euro-zone neighbors. The bailout will have most Germans wishing they had their deutsche mark back – which was the symbol of Germany’s postwar revival until it was hijacked by the euro.

Germans know that Greece’s problems are shared by Portugal, Italy and Spain. Germans know their government cannot give to others anything that their government does not first take from itself. Germans are not known for being mushy and charitable, so these industrious people will feel put upon giving alms to those who won’t take care of themselves.

Greece must fix itself, because any EU intervention gives Portugal, Italy and Spain the green light for a free lunch. Germany’s credit is good, but not good enough to guarantee a pan-euro-zone debt.

Please address your financial questions to Malcolm Berko, P.O. Box 1416, Boca Raton, Fla. 33429 or e-mail him at malber@adelphia.net. © Copley News Service