Posts Tagged ‘default’

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    The First Credit Default Swap

    Nov 28, 11 • 323 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 • 221 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 • 277 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 • 257 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]

  • Celebrating Economic Independence

    Jul 4, 11 • 210 Views • No Comments

    Alexander Hamilton must have been worried. In 1790, as Secretary of the Treasury, a troubled economy had become his responsibility. He had a huge federal debt to fund, a banking sector that was distressed, and manufacturing to stimulate. Sound familiar?...  [read more]