tag:blogger.com,1999:blog-36227136.post1809636060670274657..comments2024-01-16T08:40:53.682+00:00Comments on <a href="http://www.openeurope.org.uk">Open Europe</a>: Many questions around the second Greek bailout remain unansweredOEhttp://www.blogger.com/profile/00556463374230498875noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-36227136.post-46489111500920140752012-02-22T16:28:11.471+00:002012-02-22T16:28:11.471+00:00@rollo
Fully agree: highly indebted; not selfprint...@rollo<br />Fully agree: highly indebted; not selfprinting; zero growth (or worse); austerity allergic; structural reformphobic; considerable potential for devaluation; interest-rates manipulated downwards; haircut risk and now juniority risk.<br />Really a lousy investment. All EZ paper except AAA looks pure or potential rubbish to me.<br /><br />EZ has only been marginally growing the last decade for the crisis say 2% real growth. Using a normal multiplier and seen the extra credit (sovereign and/or private) it has been financed with. For the coming period very low growth or even zero growth would likely be the norm.<br />If you would need to transfer furthermore because of all sorts of bail outs or other transfers (whatever the name) money from the most efficient EZ economies to the most inefficient (basically to defer a reorganisation of hardly value adding Southern government sectors (at least on the margin)the next decade and even possibly the one after that might be a lost one. Not only for the PIIGS but also for the rest of the EZ, including the parts that do now relatively well.<br /><br />And subsequently running straight into the aging crisis. But that is another story.Riknoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-60173145714459995842012-02-22T12:50:27.262+00:002012-02-22T12:50:27.262+00:00The quetion is not only: why should anyone buy Gre...The quetion is not only: why should anyone buy Greek debt? but Why should anyone buy any peripheral Eurozone debt, as it could all be subordinated in the same way?Rollohttps://www.blogger.com/profile/18255460090580758354noreply@blogger.com