'The People' May Not Be Smart Enough

Summary


The future of the Greek economy, and maybe even Europe's and the world's economy, hung in the balance. The European Union proposed a bailout for Greece, which finds itself on the verge of default. On news that the EU approved the bailout plan, U.S. stocks rise.

But then Greek Prime Minister George Papandreou announced he would put the bailout proposal before voters in an up-or-down referendum. The vote would come in early December. Stock prices tumble at the news, as investors rebury their money and hunker down for the duration.

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Extract


'The People' May Not Be Smart Enough

Thankfully, Mr. Papandreou dropped the referendum idea, but only after several of his cabinet ministers either resigned or publicly denounced the...

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