Independent (August 20)
“The end of the Greek bailout is a reminder, however, that for the EU as a whole enormous tests remain with or without Britain: both as a consequence of the economic uncertainties that continue to plague much of the continent; and as a result of the ongoing need to define the European Union’s status and purpose to the satisfaction of its members, and their own populations.”
Tags: Bailout, EU, Greece, Members, Populations, Purpose, Satisfaction, UK, Uncertainties
Ekathimerini (August 19)
“Greece’s formal exit from the bailout program does not mean that the country has reached the end of an era and is turning over a brand-new leaf.” During the next phase, Greece will require “even more determination and discipline to meet stringent targets and push through more reforms that will help it get back on its feet.”
Tags: Bailout, Determination, Discipline, Era, Exit, Greece, Reforms, Targets
Wall Street Journal (May 3)
“In a year filled with European elections, no one wants another debt crisis—even if this requires pretending that Greek politicians will implement pro-growth reforms they’ve repeatedly shunned.” To reach a tentative agreement, “Athens has agreed to make certain reforms in exchange for an approximately €7 billion disbursement from a 2015 bailout package so Greece can meet July debt repayments.” Once again, the can is kicked a little further down the road. “The one certainty is that Greece and its creditors will be back at the same stand a year from now.”
Tags: Bailout, Creditors, Debt crisis, Elections, Europe, Greece, Pretending, Reforms, Repayments
Wall Street Journal (February 6)
“The Greek effort to divide and conquer by negotiating individually with other EU members instead of with the bloc as a whole is going nowhere.” Nevertheless, there may still be “room for a prudent compromise that might involve a bridge deal to allow time for a permanent agreement, followed by some easing of the terms of bailout loans in exchange for a commitment to economic reform.”
Tags: Bailout, Compromise, Economic reform, Effort, EU, Greek, Loans, Negotiations
Wall Street Journal (March 27)
“Nothing is ever simple with a euro-bailout, and the Cyprus fiasco is proving that again. On Thursday the tiny island disaster will become the first euro-zone country to impose capital controls since the single currency was introduced. This will spare Cyprus from immediate economic collapse, but the curbs are a worrying precedent.”
Institutional Investor (September Issue)
Is the financial system safer “after four years of summit meetings, regulatory conclaves, landmark legislation and detailed rule-writing—all of it aimed at ensuring that the financial system would never again crash the global economy or force taxpayers to underwrite costly bailouts?” Many things appear to have changed for the better and the regulatory stance is more aggressive, yet some of the changes may be releasing new risks that could surpass anything we’ve seen before. “The answer is not simple.”
Tags: Bailout, Economy, Financial system, Regulators, Risk, Safety, Taxpayers
Wall Street Journal (May 14)
The next federal bailout will be the United States Postal Service (USPS). Congress gave the USPS a $15 billion line of credit, but with Q1 losses of $2.2 billion (a 25% increase over last year), the credit “will be used up by the end of this year, with low odds on ever being paid back.” E-mail has battered the USPS. By decade end, 20 billion fewer letters will be mailed according to current projections. Instead of cost-cutting, however, the USPS has offered its union workers a new 4.5 year contract with a 3.5% pay raise, cost of living wage hikes and protections against layoffs. The WSJ wishes USPS management would protect taxpayers instead.
Washington Post (April 24)
The federal government still owns a quarter of GM’s common stock and over 90% of AIG. These purchases and other bailout measures saved both the automaker and the insurer. Some may urge the U.S. Government to hold its shares until a better market arrives. AIG’s stock price has fallen 25% since the start of 2011 and GM’s has fallen by $3 per share since its 2010 IPO. Earlier sales could have reaped more for the government. Later sales might as well, but “federal profit maximization was not the main purpose of the AIG or GM rescues.” The Post thinks it is time for the government to sell its remaining shares. GM and AIG should each be required to again compete as a private enterprise.
The federal government still owns a quarter of GM’s common stock and over 90% of AIG. These purchases and other bailout measures saved both the automaker and the insurer. Some may urge the U.S. Government to hold its shares until a better market arrives. AIG’s stock price has fallen 25% since the start of 2011 and GM’s has fallen by $3 per share since its 2010 IPO. Earlier sales could have reaped more for the government. Perhaps later sales could too, but “federal profit maximization was not the main purpose of the AIG or GM rescues.” The Post thinks it is time for the government to sell its remaining shares. GM and AIG should each be required to again compete as a private enterprise.
Tags: AIG, Bailout, GM, Share sale, U.S.
