Traditions and dogmas rub one another down to a minimum in such centers of varied intercourse; where there are a thousand faiths we are apt to become sceptical of them all. Probably the traders were the first sceptics; they had seen too much to believe too much; and the general disposition of merchants to classify […]

As part of the bailout agreement between Greece and the Troika, the Greek government has agreed to reduce its debt. This is the context behind the latest Greek buyback program, where the Greek government is looking to reduce EUR20 billion worth of debt. While I typically like debt reduction exercise by the public sector, I […]

The Economist supports further debt forgiveness for Greece to get Greece out of the economic disaster it is in now.[1] I support such move. It is essentially a default, but making it consensual between the creditors and the debtors will be important in maintaining some kind of stability in the market. The forgiveness will definitely […]

[2518] Pain wain

Austerity is a pain, with you drawing the wain, but that’s the only way, after your jolly days.

For those who have been following the Greek crisis, they know that March 8 is the deadline for the bond swap that is essential in ensuring an orderly default of Greek bonds. Just 12 days later, Greece is due for repayment that without any haircut to its bondholders, there would be a chaotic default. The […]

I am in the opinion that the expected sovereign debt and banking crises in Europe have been postponed to the end of 2012 or early 2013. There are two reasons why I think so. The crisis in Europe is essentially two-fold. One is due to government debts. Two is the risk of default by European […]

If I were a European taxpayer seeing my money being used to bailout a near-bankrupt socialist government due to outrageous spending while I live responsibly, I would be angry. Why should I be the guarantor of a profligate? But if I wanted the Eurozone to stay intact, I would bite the bullet and angrily pay […]

I was reading the Bloomberg Brief just now and I saw this graph. If your favorite answer is unavailable as an option above, do share in the comment section.

The story in Greece is a result of intertwining plots. One major plot concerns economic populism. It is a reminder that populist measures tend to ignore scarcity. It highlights that the policy of spend, spend and spend and then hoping someone else will take care of it, is risky. With a brick wall up ahead, […]