tag:blogger.com,1999:blog-36227136.post6630527947042924567..comments2024-01-16T08:40:53.682+00:00Comments on <a href="http://www.openeurope.org.uk">Open Europe</a>: Empty threats by the IMF?OEhttp://www.blogger.com/profile/00556463374230498875noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-36227136.post-18640373192492818982011-09-19T17:19:06.470+01:002011-09-19T17:19:06.470+01:00I agreewith Mr. Roubini's thinking, in general...I agreewith Mr. Roubini's thinking, in general.It would be preferable that this kind of unproductive meetings and conflicting statements stop, because they harm the search for realistic approaches (solutions are medium long-term), work can be done without this kind of verbal exhibition. Since there is no pilot in the Eurozone plane, and it will take years to come up with an unequivocal direction for the euro area, it is preferable to start with a half measure and allow Greece to have the 8 Bilion euros installment on the first rescue plan of 110 Billion euros (the July 2011 agreed upon (?) second bailout plan being 109 Billion euros...), instead of deferring to October 2011, and continuing with the agony and stress.<br /><br />It is not realistic that the "troika" (IMF, EU, BCE) continually ask Greece's government to come up ASAP with structural measures like privatization, tax collection improvement et al, which will take years to get implemented. The decision to take is whether Greece is allowed to stay in the Eurozone, and if so to decide rapidly on a severe reduction of Greece's debt: a "haircut" of around 50%, and jointly prepare a medium-long term plan, or whether Greece should exit the Eurozone. This would cut short a lot of unnecessary talk, since to take a decision is better than not taking one (a banality maybe, but a good rule in business).More comments are available in my blog: macrovolatility.commacrovolatility.comhttps://www.blogger.com/profile/15836091729770676785noreply@blogger.comtag:blogger.com,1999:blog-36227136.post-21030419555053153362011-09-19T14:22:28.431+01:002011-09-19T14:22:28.431+01:00Yes, every one in Europe must be sick of eurocrats...Yes, every one in Europe must be sick of eurocrats laying down DelorsRollohttps://www.blogger.com/profile/18255460090580758354noreply@blogger.comtag:blogger.com,1999:blog-36227136.post-30741267437743630212011-09-19T12:55:22.086+01:002011-09-19T12:55:22.086+01:00I think the end-game is now seriously in focus gen...I think the end-game is now seriously in focus generally (except in the minds of EUocrats). Even if the IMF backs out and the EU covers their amount, as you rightly say default is looming for Greece. Will EU citizens stand for much more of this? A very large negative I am sure. Why was no mechanism for such an eventuality ever created - I refer to M. Delors statement from 2001 on this topic.Peripatetic Scribehttps://www.blogger.com/profile/16947563967578134704noreply@blogger.comtag:blogger.com,1999:blog-36227136.post-48281557619982528482011-09-19T12:49:53.906+01:002011-09-19T12:49:53.906+01:00If this next tranche is paid out, it should have o...If this next tranche is paid out, it should have only one purpose: to avoid civil war in Greece until there has been enough time to arrange a sensible default, and print some Drachma.Rollohttps://www.blogger.com/profile/18255460090580758354noreply@blogger.com