Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
It doesn't make things worse, except for the fun with the rating agencies and default and such things.
by Colman (colman at eurotrib.com) on Fri Jul 22nd, 2011 at 04:23:57 AM EST
If we have (collectively) promised Greece to provide sufficient credit at lower-than-market interest rates, then Greece no longer has to borrow at market rates. What, then, is the negative effect if the rating agencies declare a de facto default or whatever?

Apart from enriching the hi-rollers who bought CDS, at the expense of American banks that sold it?

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II

by eurogreen on Fri Jul 22nd, 2011 at 05:10:47 AM EST
[ Parent ]
And renewed push for the Suicide Pact while the ECB is raising rates.

It's a mixed bag.  There seems to be at least some connection to reality coming around as it relates to debt levels and interest, but they're still out to lunch on the macroeconomics.

Be nice to America. Or we'll bring democracy to your country.

by Drew J Jones (pedobear@pennstatefootball.com) on Fri Jul 22nd, 2011 at 05:38:20 AM EST
[ Parent ]
I think they're still fighting about the macroeconomics.

There's a whole other strand about structural funds and so on to work out, and I think that's were the real fight is now.

Less than 3% deficits are fine if Germany is busy pumping its surplus into the periphery by way of EU funding ... (not that I'm suggesting that that's what they'll do!).

by Colman (colman at eurotrib.com) on Fri Jul 22nd, 2011 at 05:58:04 AM EST
[ Parent ]


Occasional Series