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Showing posts from May, 2015

ANGER IN EUROLAND, WHERE “GOOD NEWS” IS JUST FOR THE MARKETS

European finance ministers reacted angrily, it was reported , to what they perceived to be Greek intransigence during their meeting in the Latvian capital of Riga last week. They don't like the refusal of the anti-austerity Greek government to play their game, and they have yet to work out what to do about it. The Greeks know that they can't repay their debts, and that some sort of debt-forgiveness within the Euro framework is a better outcome for all concerned that forcing Greece to abandon the Euro altogether. In the latter case the credibility of the single currency is undermined, default is certain and the lenders will have to sing for their money. In the former, order is maintained and only a proportion of debt is written off. Logic, therefore, is on the side of the Greeks, which makes anger a natural response from their interlocutors, who have boxed themselves into a corner from which they can only lose. Their frustration is palpable: the big boys always set the rul