Posts Tagged ‘bailout’

  • The US is again hitting its debt ceiling.

    Greek Austerity Facts

    Feb 10, 12 • 372 Views • No Comments

    With a March 20 deadline approaching, new European bailout negotiations continue to emphasize austerity. Curious about what austerity specifically meant, I looked at a Greek newspaper. In the sports section, they discussed the plight of Greece and the...  [read more]

  • Thomas Sargent and Cutting the deficit

    Alexander Hamilton, George Washington and the Euro Zone

    Dec 13, 11 • 269 Views • No Comments

    How to decide euro zone policy today? Just look at the U.S. between 1780 and 1840. Saturday, in his Nobel Prize lecture, economist Thomas J. Sargent compared the past U.S. to the current euro zone. He based his talk on 4 questions: Should governments default...  [read more]

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    Euro Deal Primer

    Oct 28, 11 • 299 Views • No Comments

    To understand euro zone bailout plans, just think BBB. Bonds, Banks, Bailout The Bonds: If you own Greek debt, then you would be asked to accept a 50% haircut. That means you will get new Greek bonds worth half the old ones. The catch? It’s voluntary. A...  [read more]

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    Too Big To Fail

    May 25, 11 • 226 Views • No Comments

    The HBO documentary, “Too Big To Fail” was excellent. But what to come away with? TBTF (Too Big To Fail) solves problems and it creates them. TBTF can reverse a confidence crisis. When the world is worried that the failure of a large bank will...  [read more]

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    Bailout Fatigue

    May 17, 11 • 224 Views • No Comments

    Yesterday, in a 94-0 vote, the U.S. Senate said it had bailout fatigue. No, they were not referring to Fannie Mae or General Motors. They meant Greece. This is the connection: By selling government securities, Greece had borrowed money to fund massive...  [read more]