tag:blogger.com,1999:blog-6616959642391988608.post1089282377151234316..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: PIIGS updateScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6616959642391988608.post-48792583123371367722011-11-10T17:33:47.544-08:002011-11-10T17:33:47.544-08:00Scott -
If Greece negotiated 50% forgiveness on d...Scott -<br /><br />If Greece negotiated 50% forgiveness on debt held by the private sector, why would the Italians ever feel compelled to pay in full? I'm afraid the example has been set. What would a 50% haircut on all privately held Italian debt do to the system?<br />I fear the repercussions would be severe.pufferhttps://www.blogger.com/profile/02594945926620839004noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-7595729647542646682011-11-10T17:27:39.617-08:002011-11-10T17:27:39.617-08:00Scott:
I'm interested to hear your opinion on...Scott: <br />I'm interested to hear your opinion on "unintended consequences" -- specifically, whether the latest euro-deal in which CDS are not being honored in a Greek restructuring has changed risk models and led banks, et al., to dump bonds, e.g., Italy, in order to reduce risk.<br />Also, one thing I have learned from you is to pay attention to the trajectory rather than a PerformanceSpeaksForItselfhttps://www.blogger.com/profile/02710385857829942329noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-15926476191449156682011-11-10T16:35:36.332-08:002011-11-10T16:35:36.332-08:00I am more inclined to side with how Mr Pettis desc...I am more inclined to side with how Mr Pettis describes the current plight of Europe. This is a German born problem and a simple balance of payments issue. Therefore it is Germany and their policy that is the only way to save the system as is.<br /><br />http://mpettis.com/2011/11/germany-must-do-it-not-china/<br /><br />Prior to the EUR, many of the so-called bloated countries were actually Public Libraryhttps://www.blogger.com/profile/00017383928897945054noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-51413345653084448862011-11-10T13:54:59.168-08:002011-11-10T13:54:59.168-08:00Looks like the Eurozone might have been a bad idea...Looks like the Eurozone might have been a bad idea--it allowed some nations, such as Itlay , to borrow in euros--benefitting from the currencies stability.<br /><br />If Italians had to borrow in lira and Greeks in drachmas, they would have run up against increased borrowing costs a long time ago.<br /><br />And now, those two nations are trapped--they cannot print more lira and drachmas and Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com