Daddy, Daddy, who are the "financial markets" who are bullying the Greeks and the euro? Well, son, they are hedge funds, pension funds and the trading arms of the big banks. But Daddy aren't those the same banks which the world's governments have just spent billions of euros, pounds and dollars to rescue from the consequences of their own greed and stupidity?

John Lichfield: A lesson, son, in crisis and paradox

''Daddy, Daddy, who are the "financial markets" who are bullying the Greeks and the euro? Well, son, they are hedge funds, pension funds and the trading arms of the big banks.






But Daddy aren't those the same banks which the world's governments have just spent billions of euros, pounds and dollars to rescue from the consequences of their own greed and stupidity?




Er, yes son. And, Daddy, aren't those banks now betting those same billions to try to make money from the fact that some of the governments are over the heads in debt? Er, yes son.



And these countries, including Greece, would not have been so deeply in the red if they had not given all those billions to the banks who are now attacking them? Or if the world economy had not been dumped off a cliff by all that bank-inspired debt and bank-led speculation in bad debts?



Well, son, yes, that's partly true but some countries, especially Greece, have been living beyond their public means for years. In Greece, for instance, lawyers, doctors, restaurant owners and wealthy ship-owners, pay virtually no income tax but expect to live in a properly functioning, modern state.



OK, Daddy, I understand that. It's very naughty of them. But isn't this still a case of the banks biting the hand that fed them?



Er, no, son, it's worse that that. It's like the banks complaining that governments are naked after taking their clothes. But the markets (i.e. banks) don't think that way. If they smell blood, they pile in like hyenas after a limping zebra.


It's called a market opportunity