The Greek Economic Crisis

Last week, the economic crisis in Greece continued to unfold when the country failed to make a scheduled debt repayment to the International Monetary Fund (IMF). And just yesterday, in a referendum, the Greeks voted against the terms of a previous bailout from its international creditors that would have brought more stability and economic reforms to the country. The situation in Greece is a case study in government spending, waste and dysfunction.

For far too long, the Greek government spent more money than it took in, borrowed, and grew the size and scope of the welfare state. Now the Greek people are faced with high unemployment, limits on withdrawing money from ATMs, and a real economic and political crisis. At a time when the United States continues to spend and borrow, we should see the consequences of failed government policy in Greece and get our spending under control. As Chairman of the Financial Institutions and Consumer Credit Subcommittee, I will continue to monitor the situation in Greece to better understand implications for the U.S. financial sector.