Daily Archives: January 10, 2012

Economics One: Is an Orderly Restructuring of Greek Debt Feasible?

In a recent paper, “How to Restructure Greek Debt,” Mitu Gulati a professor at Duke Law School, and Lee Buchheit, a partner at Cleary Gottlieb in New York, lay out in detail an approach to restructuring which would likely result in very little market disruption. Gulati and Buchheit have studied or been involved in many sovereign debt restructurings over the years, so they know the relevant law and what they are talking about in the Greek case. I know them from their work on “collection action clauses,” (CACs) which emerging market countries put into their sovereign bonds as a way a way to avoid disruptive defaults and thereby give the IMF and the official sector an alternative to bailouts. Collective action clauses enable a super majority of bond holders (frequently 75%) to agree with the sovereign to change the financial terms of a bond and then require the remaining bond holders to go along.

via Economics One: Is an Orderly Restructuring of Greek Debt Feasible?.

History of Previous European Currency Unions

The LMU was an official subset of an unofficial “franc area” (monetary union based on the French franc). This is similar to the use of the US dollar or the euro in many countries today. At its peak, eighteen countries adopted the Gold franc as their legal tender (or peg). Four of them (the founding members of the LMU: France, Belgium, Italy and Switzerland) agreed on a gold to silver conversion rate and minted gold and silver coins which were legal tender in all of them. They voluntarily limited their money supply by adopting a rule which forbade them to print more than 6 franc coins per capita.

via History of Previous European Currency Unions.

Οι επτά κρυφές πληγές της κρίσης, σύμφωνα με την Hellastat

Τα άδεια ράφια, η φούσκα των εξαγωγών, οι κυρώσεις στο Ιράν, η επιχειρηματική καχυποψία, ο νόμος του ισχυρού, η παραοικονομία και η χρονική υστέρηση περιλαμβάνονται στις επτά κρυφές πληγές της κρίσης που επηρεάζουν και θα επηρεάσουν σημαντικά τις συνθήκες διαβίωσης των Ελλήνων, σύμφωνα με έρευνα της Hellastat.

via kathimerini.gr – Οι επτά κρυφές πληγές της κρίσης, σύμφωνα με την Hellastat.

kathimerini.gr – Η εσωτερίκευση της ήττας

Σπατάληση συμβολικού κεφαλαίου, αυτοσυκοφάντηση από στόματα ηγετών, διάχυση ευθυνών, συλλογική ενοχή, υποτέλεια, διγλωσσία, εσωτερίκευση της ενοχής από την κοινωνία. Κάπως έτσι φτάσαμε στη σημερινή ηθική ερείπωση και την εθνική κατάθλιψη. Και αντί να κοιτάμε πώς θα διορθώσουμε τα πολλά και δομικά σφάλματα, πώς θα μετασχηματίσουμε την πολιτική σκηνή με δημιουργική καταστροφή, πώς θα ανατάξουμε την οικονομία και τη χώρα, σπαταλιόμαστε σε μια άγονη καζουιστική, κατηγορώντας εαυτούς και αλλήλους· βιώνουμε μια καμπή σαν τελειωτική ήττα.

via kathimerini.gr – Η εσωτερίκευση της ήττας.

BBC News – The Greek parents ‘too poor’ to care for their children

Greece’s financial crisis has made some families so desperate they are giving up the most precious thing of all – their children.

One morning a few weeks before Christmas a kindergarten teacher in Athens found a note about one of her four-year-old pupils.

“I will not be coming to pick up Anna today because I cannot afford to look after her,” it read. “Please take good care of her. Sorry. Her mother.”

In the last two months Father Antonios, a young Orthodox priest who runs a youth centre for the city’s poor, has found four children on his door step – including a baby just days old.”

via BBC News – The Greek parents ‘too poor’ to care for their children.