Posts Tagged ‘default’

  • euro zone map

    Exit Plans

    May 24, 12 • 387 Views • No Comments

    A British charitable trust has offered a hefty reward for the best eurozone break-up plan. Their goal? Improve and influence policy though a 250,000 pound ($393,430) incentive prize. As I read through the finalists’ plans, the unfathomable complexity of......  [read more]

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    Greek (Debt) Myths

    Jan 26, 12 • 417 Views • No Comments

    Maybe sell some islands and an ancient ruin or two? In Boomerang, Blind Side author Michael Lewis repeats what German politicians were suggesting in 2009 when they heard that the Greek debt was much larger than previous estimates. How much bigger? No one was......  [read more]

  • Thomas Sargent and Cutting the deficit

    Alexander Hamilton, George Washington and the Euro Zone

    Dec 13, 11 • 360 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 • 581 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 • 340 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]