Great Graphic: Greece and Euro Zone Macros

Here is a Great Graphic from Thomson Reuters depicting the Greek economy in comparison with the overall euro zone.  The fact that Greece so under-performed Europe since on set of the crisis is well known and appreciated.  However, it is noteworthy that Greece was generally under-performing even prior to the crisis.   The crisis has exacerbated the divergence. 

 In addition, it seems that the difference between Greece and the euro zone is a question of degree not kind.  Admittedly, a sufficiently quantitative difference can have a qualitative difference. 

The differences between Greece and the euro area tend to get most of the attention.  Investors may also find it helpful to consider what the two have in common.  The common element of Greece and many other countries in the euro area is the lack of international competitiveness.   The debt seems to be "simply" be an expression of that fact. 

It seems somewhat politically naive to think that Greece can be removed like a tumor and the rest of the body politic will be saved.  It is not the case that the Greek problem metastasized and that is what ails the rest.  Portugal, Ireland, Spain, Italy and France have their own home grown imbalances.   Unfortunately, if Greece was not serving as the lightening rod, some else would.