The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
But yes, realising a 50 % haircut will be more painful for people who have not booked it already.
Austerity can only be implemented in the shadow of a concentration camp.
Banking regulators worthy of the name would require that banks set aside reserves to cover likely losses on "investment" books, of which the deterioration of the mark-to-market would be a basic indicator.
Economics is politics by other means
The more I think about it, the more a central bank guarantee of a lower bound on the exchange rate strikes me as turning idiosyncratic risk into systemic risk. Or, if you will, socialising the cost of buying currency swaps to hedge against sudden currency movements by replacing it with restrictions on fiscal and interest rate policy.
by ManfromMiddletown - Oct 20 21 comments
by gmoke - Oct 7 3 comments
by ARGeezer - Oct 7 60 comments
by DoDo - Oct 3 10 comments
by Frank Schnittger - Sep 29 19 comments
by Crazy Horse - Sep 29 25 comments
by Frank Schnittger - Sep 27 4 comments
by ManfromMiddletown - Oct 2021 comments
by gmoke - Oct 73 comments
by ARGeezer - Oct 760 comments
by DoDo - Oct 310 comments
by Crazy Horse - Sep 2925 comments
by Frank Schnittger - Sep 2919 comments
by Frank Schnittger - Sep 274 comments
by Cyrille - Sep 24136 comments
by afew - Sep 2240 comments
by Migeru - Sep 2133 comments