Posts Tagged ‘default’

  • Thomas Sargent and Cutting the deficit

    Alexander Hamilton, George Washington and the Euro Zone

    Dec 13, 11 • 342 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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    The First Credit Default Swap

    Nov 28, 11 • 535 Views • No Comments

    Some of the euro zone’s problems actually started with the Exxon Valdez oil spill. After the 1989 Exxon Valdez calamity, when an Alaska jury said that Exxon owed $5 billion in damages, they asked J.P. Morgan for a $4.8 billion line of credit. Concerned...  [read more]

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    Default Deja Vu

    Nov 2, 11 • 319 Views • No Comments

    Between its independence in 1829 and 2006, Greece has had 5 defaults or debt reschedulings that occupied a total of 50.6 years.  Described by Rogoff and Reinhart in their 2008 paper and book, This Time It’s Different, few nations break out of a...  [read more]

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    Greece and Argentina

    Oct 25, 11 • 452 Views • No Comments

    Nobody wants Greece to become Argentina. It all began with what scholars Rogoff and Reinhart called the lending boom of the 1990s. Enjoying the influx of dollars, Argentina borrowed and grew and prospered…for awhile.  But when recession hit at the end...  [read more]

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    Greek Haircuts

    Jul 6, 11 • 370 Views • No Comments

    When people talk about haircuts and Greece, they are no longer referring to the female beauticians that retired at 50 with a generous state pension because their work was “arduous.” Instead, they are discussing the losses, known on Wall Street as...  [read more]