Paying Greece’s Creditors: History Teaches Us Only So Much

Now that the ECB has—for the time being—effectively vetoed any bail-in of Greece’s creditors—even a modest reprofiling of the debt, which would push maturities out at unchanged coupon while keeping face value at par—the official sector is running out of options for a meaningful bail-in of creditors. The latest idea—apparently deemed acceptable even by the […]

The Greek Drama: Act No. X…

The Economist (May 18th 2011) continues the presentation of subsequent acts of lasting Greek financial drama… Accordingly, there are supposed to be five options, although only the last one – “serious haircut on the value of the Greek debt” – seems to be a way out of the deep fiscal crisis. This is what I’ve […]

Thank You Mr. Roubini, But Can I See the Menu Again?

For several months Europe has been the theatre of a confusing and often acrimonious debate about the restructuring of Greek debt. The debate is confusing because people use the same words to mean different things. Restructuring for an economist means a reduction of the present value of the income stream the holder of a debt […]

Greek Melt Up?

The European Union will have a final bailout for Greece “by the end of June and have ruled out a “total restructuring” of the nation’s debt” according to Jean-Claude Juncker, head of the group of euro-area finance ministers. Stocks rose around the world. The Stoxx Europe 600 Index climbed 1%, while the MSCI World Index […]

Are Fissures in Europe Worse Than Media Reports Suggest?

Thanks to an alert NC reader, we featured in Links more than a month ago the fact that Denmark, contrary to the spirit of the Eurozone, was implementing border controls. Today, a hand-wringing comment by Peter Spiegel, the Financial Times’ bureau chief in Brussels, describes how sentiment against Eurozone integration has risen among the locals. […]

1 76 77 78