Financial Times (June 22)
“Bond investors are already pricing Greece’s government debt as though it has defaulted.” The Financial Times presents the four scenarios most likely to play out in the ongoing Greek saga: Disorderly default, Orderly default, Staggering on and Leaving the euro. None of them are pretty and the actual course will likely be revealed in the next few weeks.
“Bond investors are already pricing Greece’s government debt as though it has defaulted.” The Financial Times presents the four scenarios most likely to play out in the ongoing Greek saga: Disorderly default, Orderly default, Staggering on and Leaving the euro. None of them are pretty and the actual course will likely be revealed in the next few weeks.
Time (June 16, 2011)
A year of austerity has left many Greeks nearly broke or unemployed, “and the debt-ridden country no better off.” Greece now has the ignominy of holding the world’s lowest debt rating, following S&P’s most recent downgrade on June 13. Athen’s Syntagma Square (Constitution Square) has become the daily scene of protests and riots. The government appears near dead, with neither major party able to offer leadership. It’s difficult “to see any clear champion for the millions of Greeks struggling to get by.”
A year of austerity has left many Greeks nearly broke or unemployed, “and the debt-ridden country no better off.” Greece now has the ignominy of holding the world’s lowest debt rating, following S&P’s most recent downgrade on June 13. Athen’s Syntagma Square (Constitution Square) has become the daily scene of protests and riots. The government appears near dead, with neither major party able to offer leadership. It’s difficult “to see any clear champion for the millions of Greeks struggling to get by.”
Tags: Debt, Downgrade, Government, Greece, S&P, Unemployment
The Economist (June 9)The Economist (June 9)
By postponing difficult decisions about “the Greek mess,” Europe’s leaders are only creating future problems. “The rescuers think buying time reduces the risk of contagion from a Greek debt restructuring to other euro-zone countries. But the pall of an unsolved Greek mess will continue to hang over the euro zone, just as it has done for the past year.” Instead they should begin “an orderly restructuring of Greek debt now. That remains the only solution.”
By postponing difficult decisions about “the Greek mess,” Europe’s leaders are only creating future problems. “The rescuers think buying time reduces the risk of contagion from a Greek debt restructuring to other euro-zone countries. But the pall of an unsolved Greek mess will continue to hang over the euro zone, just as it has done for the past year.” Instead they should begin “an orderly restructuring of Greek debt now. That remains the only solution.”
Tags: Debt, Europe, Greece, Restructuring
The Telegraph (May 22)
Half the world thinks Greece should restructure its debt. The other half doesn’t. Prime Minister George Papandreou has come down firmly against any debt restructuring, but Greek citizens may think otherwise. Continued belt tightening could risk “further civil unrest. A poll published on Sunday showed 80pc of Greeks would refuse to make any further sacrifices to ensure continued EU and IMF support for the bail-out.”
Tags: Civil unrest, Debt, Greece, Restructuring, Sacrifice
Bloomberg (May 17)
“A Greek default would be “highly destabilizing” for banks, causing losses that “far exceed” the size of their loans and investments there, according to Moody’s Investors Service.” European banks hold approximately €95 billion of Greek assets. Moody’s calculated direct possible losses on these assets at €34.4 billion.
New York Times (May 13)
A year after Europe’s leaders put together a $140 billion bailout packaged for Greece, they are now expected to propose “a further $86 billion dose of the same failed medicine.” They shouldn’t. Delaying the inevitable simply inflates the final bill. Greek debt needs to be restructured. “The longer Europe’s leaders hide from this fact, the bigger the eventual bill will be, and the longer Greeks will have to wait for renewed growth.”
Tags: Debt, Europe, Greece, Restructuring
Economist (May 12)
“If the stakes were not so high, Europeans’ incompetence in the euro-zone debt crisis would be comic.” A year after the Greek rescue began, there is still no end in sight. A new plan is long overdue, but instead “Europeans are bickering like children in a playground.” Call it what you will, it is time for a reprofiling or orderly debt restructuring.
“If the stakes were not so high, Europeans’ incompetence in the euro-zone debt crisis would be comic.” A year after the Greek rescue began, there is still no end in sight. A new plan is long overdue, but instead “Europeans are bickering like children in a playground.” Call it what you will, it is time for a reprofiling or orderly debt restructuring.
Tags: Debt, EU, Greece, Restructuring
Economist (March 31)
A “big step forward” is how Germany’s chancellor Angela Merkel characterized the March 24-25 euro-zone summit. The Economist thinks otherwise. ”Something between a fudge and a failure would be more accurate.” Europe’s leaders must face up to the fact that Greece, Ireland and Portugal are bust and their debts need to be restructured. Delaying the inevitable only makes things worse.
A “big step forward” is how Germany’s chancellor Angela Merkel characterized the March 24-25 euro-zone summit The Economist thinks otherwise. ”Something between a fudge and a failure would be more accurate.” Europe’s leaders must face up to the fact that Greece, Ireland and Portugal are bust and their debts need to be restructured. Delaying the inevitable only makes things worse.
Tags: Debt criss, Europe, Greece, Ireland, Portugal, Restructuring
Wall Street Journal (January 6)
“Looks like it’s almost time for another change of leader in Tokyo, which is becoming the Italy of Asia.” The WSJ makes this prediction based on Prime Minister Naoto Kan’s divisive attempts to force Ichiro Ozawa out of the DPJ and increase the consumption tax. The newspaper also makes another unwelcome international comparison. The next Prime Minister will “have to tackle Japan’s problems before unpleasant outcomes are forced upon it. Without cuts to entitlements and tax cuts to promote growth, Tokyo will continue turning into Athens.”
“Looks like it’s almost time for another change of leader in Tokyo, which is becoming the Italy of Asia.” The WSJ makes this prediction based on Prime Minister Naoto Kan’s divisive attempts to force Ichiro Ozawa out of the DPJ and increase in the consumption tax. The newspaper also makes another unwelcome international comparison. The next Prime Minister will “have to tackle Japan’s problems before unpleasant outcomes are forced upon it. Without cuts to entitlements and tax cuts to promote growth, Tokyo will continue turning into Athens.”
