Greece Archive

Talk of other member nation haircuts slowly surfacing

Talk of widespread haircuts getting more serious. As previously discussed, this has the potential for catastrophic global financial meltdown. Analysis: Greek default may be gift to other euro strugglers By Mike Dolan Mar 7 (Reuters) — Greece’s tortuous debt restructuring and threat of retroactive laws to compel reluctant creditors heaps regulatory risk ...Read More

GS: ECB Preview

I agree that the ECB is ‘backing off’ and will only again engage if it gets bad enough. Back to the analogy of watering the flower only when it’s about to die. They don’t realize that it needs continuous watering in the normal course of events. 14 more days to the Greek ...Read More

GEI article is up

Eurozone: How to Drive an Economy in Reverse By Warren Mosler February 27 — The situation in Greece brings me back to the conclusion that merely resolving solvency issues in the Eurozone doesn’t fix the economy. Solvency must not be an issue, but if there is negative growth, solvency math simply doesn’t ...Read More

Someone is still worried about the US becoming the next Greece

Sorry to see this happen. Whatever. First, it’s not a debt burden. Debt management is just shifting $ between Fed reserve accounts to Fed securities accounts. Second, the trick is for a given size govt to keep taxes at the right level. Yes, some day circumstances could possibly warrant much higher taxes, ...Read More

More on Greece and the euro

As previously discussed, all policies seem to be ‘strong euro’ first. And the ‘success’ of the euro continues to be gauged by its ‘strength’. The haircuts on the Greek bonds are functionally a tax that removes that many net euro financial assets. Call it an ‘austerity’ measure extending forced austerity to investors. ...Read More


Comes back to the idea that resolving solvency issues in the euro zone doesn’t fix the economy. And with negative growth the solvency math doesn’t work for any of the euro members. And what’s with the ECB threatening to back away on liquidity support for the banking system? So looks to me ...Read More

Marshall Auerback video

Marshall Auerback video ...Read More

euro zone update- markets yet to discount the discounts

The issues I’ve been discussing over the last year or two while now crystallizing, remain highly problematic. The idea of Greek default transformed from being a Greek punishment to a gift, with the pending question: ‘If Greece doesn’t have to pay, why do I?’- threatening a far more disruptive outcome that is ...Read More

Irish want debt concession if ECB aids Greece

As previously discussed, once Greece does it, it’s compelling for everyone else to do it. It’s the classic fallacy of composition. When someone stands up at a football game to get a better view, it quickly makes sense for everyone else to stand up as well. Yes, you can say they all ...Read More

Greek options

There is probably not much voter support for returning to the drachma. The voters would probably rather have the Germans run their finances than their own leaders. They’ve seen past drachma financial dramas, with interest rates spiking for everyone, not just the govt, rampant inflation, and a collapsing currency as well as ...Read More