European Central Bank in a fix over Greek debt by Joseph Stiglitz

European Central Bank in a fix over Greek debt by Joseph Stiglitz Monday 6 February 2012 The Guardian Article history Comments (13)

This article ties-in neatly with The Economist: Argentina’s debt default Gauchos and gadflies http://kevindayhoff.blogspot.com/2012/02/economist-argentinas-debt-default.html I’ve read it several times and gain more insights every time I read it…

Creditors’ decade-long battle with Argentina shows just how tangled sovereign defaults can be Oct 22nd 2011 NEW YORK http://www.economist.com/node/21533453

Also see: Eurozone Crisis: It is all Greek to me! by Kevin E. Dayhoff February 8, 2012

http://kevindayhoff.blogspot.com/2012/02/eurozone-crisis-it-is-all-greek-to-me.html

http://www.thetentacle.com/ShowArticle.cfm?mydocid=4907

http://www.thetentacle.com/author.cfm?MyAuthor=41

AS GREECE flirts with disaster and several other European countries buckle under heavy debts, creditors’ experience with Argentina should serve as a sobering reminder about the mess that can follow a sovereign default. A decade after the Latin American country welshed on $81 billion, disgruntled creditors are still chasing their money. The litigation, and Argentina’s defiance in the face of judgments against it, complicate its plans to return to international capital markets.

Argentina’s default, after a severe economic crisis, sparked social unrest and runs on banks. It subsequently presented creditors with a take-it-or-leave-it offer of 35 cents on the dollar. They considered this derisory: previously, delinquent countries had typically paid 50-60 cents. But the government stood firm and roughly three-quarters of the bondholders took part in a debt exchange in 2005. More joined in 2010, bringing the total to 93%... http://www.economist.com/node/21533453

In this section Hitting the kerb Darkness visible Europe’s new dress code Slow finance Unrest in peace

Related topics United States Bank for International Settlements Argentina

Government and politics Public finance

http://www.economist.com/node/21533453

The ECB may be putting the interests of the few banks that have written credit-default swaps before those of Greece, Europe's taxpayers, and creditors

http://www.guardian.co.uk/business/economics-blog/2012/feb/06/european-central-bank-greek-debt

Nothing illustrates better the political crosscurrents, special interests, and shortsighted economics now at play in Europe than the debate over the restructuring of Greece's sovereign debt. Germany insists on a deep restructuring – at least a 50% "haircut" for bondholders – whereas the European Central Bank insists that any debt restructuring must be voluntary.

In the old days – think of the 1980s Latin American debt crisis – one could get creditors, mostly large banks, in a small room, and hammer out a deal, aided by some cajoling, or even arm-twisting, by governments and regulators eager for things to go smoothly. But, with the advent of debt securitisation, creditors have become far more numerous, and include hedge funds and other investors over whom regulators and governments have little sway.

Moreover, "innovation" in financial markets has made it possible for securities owners to be insured, meaning that they have a seat at the table, but no "skin in the game". They do have interests: they want to collect on their insurance, and that means that the restructuring must be a "credit event" – tantamount to a default. The ECB's insistence on "voluntary" restructuring – that is, avoidance of a credit event – has placed the two sides at loggerheads. The irony is that the regulators have allowed the creation of this dysfunctional system… http://www.guardian.co.uk/business/economics-blog/2012/feb/06/european-central-bank-greek-debt

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Also see: Eurozone Crisis: It is all Greek to me! by Kevin E. Dayhoff February 8, 2012

http://kevindayhoff.blogspot.com/2012/02/eurozone-crisis-it-is-all-greek-to-me.html

http://www.thetentacle.com/ShowArticle.cfm?mydocid=4907

http://www.thetentacle.com/author.cfm?MyAuthor=41

Now that the Super Bowl is over there may be no better time to focus some attention on the continuing Greek tragedy that is unfolding over in the economic Twilight Zone, known as the Eurozone.

There is a growing sense that Americans, somewhat exhausted after a decade of foreign wars and international conflict, have grown increasingly isolationist in their worldview.

That may be a good thing to a certain extent. The United States cannot continue to pay the price of maintaining the planet’s police force.

While other nations concentrate that portion of its gross national product to strengthening its industrial base, quality of life and economy – think Germany – that would otherwise go to defense spending if it were not for the United States, our nation continues to wallow in an economic tar pit.

Just when our nation’s economy cheers up a bit, things threaten to get worse quickly.

As we head for the seclusion of the isolationist, padded panic room, it might be a good idea to take a look over our shoulder and keep an eye on Greece – and Portugal, Ireland, Spain and Italy… http://www.thetentacle.com/ShowArticle.cfm?mydocid=4907

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Argentina’s debt default Gauchos and gadflies

http://kevindayhoff.blogspot.com/2012/02/economist-argentinas-debt-default.html

I’ve read it several times and gain more insights every time I read it…

Creditors’ decade-long battle with Argentina shows just how tangled sovereign defaults can be Oct 22nd 2011 NEW YORK http://www.economist.com/node/21533453

AS GREECE flirts with disaster and several other European countries buckle under heavy debts, creditors’ experience with Argentina should serve as a sobering reminder about the mess that can follow a sovereign default. A decade after the Latin American country welshed on $81 billion, disgruntled creditors are still chasing their money. The litigation, and Argentina’s defiance in the face of judgments against it, complicate its plans to return to international capital markets.

Argentina’s default, after a severe economic crisis, sparked social unrest and runs on banks. It subsequently presented creditors with a take-it-or-leave-it offer of 35 cents on the dollar. They considered this derisory: previously, delinquent countries had typically paid 50-60 cents. But the government stood firm and roughly three-quarters of the bondholders took part in a debt exchange in 2005. More joined in 2010, bringing the total to 93%... http://www.economist.com/node/21533453

In this section Hitting the kerb Darkness visible Europe’s new dress code Slow finance Unrest in peace

Related topics United States Bank for International Settlements Argentina

Government and politics Public finance

http://www.economist.com/node/21533453

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CNN: Fernandez sails to victory in Argentinian presidential vote

Fernandez sails to victory in Argentinian presidential vote

http://articles.cnn.com/2011-10-24/americas/world_americas_argentina-elections_1_cristina-fernandez-female-president-peronist-party?_s=PM:AMERICAS

October 24, 2011|By the CNN Wire Staff

Cristina Fernandez de Kirchner became Latin America's first female president to win a second term when she sailed to victory in Argentina's elections.

With 98% of votes counted Monday, Fernandez was the decisive winner, obtaining nearly 54% of votes cast and far surpassing her closest competitor.

Hermes Binner, a Socialist governor from Santa Fe, came in second place with almost 17% of the votes.

Economic issues played a large role in Sunday's vote, political analyst Carlos Germano told CNN en Español.

South America's second-largest economy has bounced back from the brink and shaped a most unlikely recovery, driven by high commodities demand from China and a series of unorthodox economic policies that worked to help shelter Argentina from much of the economic malaise that is gripping the rest of the planet right now.

Under Fernandez's leadership, Argentina's economy has enjoyed sustained growth of about 8% annually. The president points to this expansion and a low debt load as examples of how Argentina is well-positioned to weather the uncertainty in the current global markets.

Fernandez's win was a sign that Argentinians want to see economic growth continue, Germano said.

"It was an overwhelming vote to preserve what we have in light of the imminence of the problems that we are seeing in the United States and Europe," he said.

Fernandez, a center-left member of the Peronist party, went into Sunday's vote as the undisputed front-runner after handily winning the primary vote… http://articles.cnn.com/2011-10-24/americas/world_americas_argentina-elections_1_cristina-fernandez-female-president-peronist-party?_s=PM:AMERICAS

20111024 CNN Fernandez sails to victory

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Labels: Argentina, Argentina President Cristina Kirchner, Bus Ag, Bus Econ 2011, Bus Econ Center for Econ and Policy Research, Bus Econ sovereign debt, Bus Econ Theory Keynesians, Business Economics, People Kirchner Cristina

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