Sunday, May 22, 2011

Rejected: Greek Restructuring

I also ran across this article, which I thought was awfully interesting.

“A Greek debt restructuring is not the appropriate way forward -- it would create a catastrophe” because it would damage the banking system, ECB Executive Board member Juergen Stark said today in Lagonissi, Greece. Fellow board member Lorenzo Bini Smaghi said in Milan that “a solution for reducing debt but not paying for it will not work.”

Looks like Greece is not going to get a free lunch. The thought is that a plan to reduce the debt will "jeopardize all of Europe," but I'm not so sure about this. I think that perhaps if they do not restructure, it will jeopardize all of Europe. Agree? Disagree?
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2 comments:

  1. MARKMay 22, 2011 at 7:11 PM

    Have Goldman Sachs cover half the bill!

    Yeah, I would agree, let Greece default. It will put more undue strain on other European countries, the domino effect is a legitimate concern.

    ReplyDelete
  2. MARKMay 22, 2011 at 7:11 PM

    will--*would*

    ReplyDelete

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