Posts Tagged ‘default’

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    Greek (Debt) Myths

    Jan 26, 12 • 662 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]

  • Economic News Summary and Cutting the deficit

    Alexander Hamilton, George Washington and the Euro Zone

    Dec 13, 11 • 613 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 • 980 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 • 570 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 • 918 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]