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. Other member nations […]

Bank tax proposed to help Greece bail-out

Gets stranger by the day as all sides seem to be struggling to merge the political with the pseudo economic. A Greek bailout adds nothing to aggregate demand, as it doesn’t result in any increased spending from current budgeted levels. However, and while not all that large, this bank tax both removes net euro financial […]