July 1, 2015

CHANGE: Europe rallies behind Merkel as Greeks hit breaking point.

Related: USA Today: No Tragedy If Greece Leaves The Eurozone. Actually, I’d say it’s no tragedy if everyone does. Plus, a larger lesson:

There are also some unsettling parallels between Greece and highly leveraged U.S. states, as well as the territory of Puerto Rico, which announced this week it could not make its current payment on $72 billion in debt.

While Puerto Rico might be a lost cause at this point, major states are not. They could put their financial houses in order if their governments just showed some spine. A demonstration of how little appetite there is for bailouts, even in liberal Europe, should send a clear message on both sides of the Atlantic.

Sooner or later, you run out of other people’s money.

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