Things are so complicated in Europe you’d think you need a PhD in Economics just to keep track of what’s going on, but at least for this video, you don’t. I’m Garrett Jones. I’m an Associate Professor of Economics at George Mason University. I’m going to try to boil it down to a ridiculously simple but accurate story. Imagine a frat boy, he’s going to college. He needs to borrow some money to keep going, so he goes to his rich uncle and says, can I borrow some money for college? And the uncle says, if I’m going to lend you money you got to keep your act together, and I want to see that you’re getting good grades. I’m going to make you sign a document. Frat boy says, I’ll sign on the dotted line, I’ll take the money, I’ll get back to you in a couple of years. Goes to college. Instead of getting the Bs that he promised, he gets Cs, C+s, the occasional B-. His grades are below what he promised and he still needs some more money, and the uncle says, well, you didn’t keep your promise last time, should I believe that you’re going to be able to keep your promise in the future? I’m going to have somebody check up on you every month in college and check on your grades. Now of course that’s totally humiliating for college student right? The frat boy says, hey, not only did I get okay grades, I majored in something really hard. You can see that’s kind of how the Greeks feel, they were asked to do something incredibly difficult, and even if they did only half of it, to them they feel like, hey, we passed a pretty tough test. The uncle like the Europeans are saying, I asked you to do something, you signed on the the dotted line, and you didn’t keep your promise. The Greeks are humiliated by having to change their ways. The Europeans don’t want to lend to someone who keeps maybe half of their promises.