Greece made one of the more baffling U-turns last week when the Government advising no to a creditor package in a referendum, only to propose a seemingly more stringent version. However, on closer inspection, the Greek negotiating position isn’t all that surprising and the most important clues were actually available to all from a 2012 […]
Entries Tagged as 'Eurocrisis'
January 3rd, 2016 · Comments Off on U-Turn In Greece | Seeking Alpha
January 3rd, 2016 · Comments Off on The Parody Of Errors That Led To Grexit | Seeking Alpha
Now that Greece’s exit from the eurozone seems all but a foregone conclusion, we look back at whether this could have been averted. What shows is not only a parody of errors on both sides, but also the severe constraints of the euro itself. The initial fallout of Grexit will probably be limited mostly to […]
January 3rd, 2016 · Comments Off on Portugal, The Next Eurozone Domino? | Seeking Alpha
The Greek situation is escalating, banks will be closed, capital controls imposed, and Greece is likely to default on its debt to the IMF on Tuesday. This could leave a big bill to other eurozone countries and tip the already precarious public finances over the edge in several member states, most notably Portugal. Several countries […]
January 3rd, 2016 · Comments Off on If You Do What You Always Do…
The markets rejoiced after Greece seems to have a deal with its creditors but then the party had to be called off because the IMF didn’t play ball. The Greeks have not accepted counter proposals, and the whole issue is up in the air. However, the big outlines of a deal, if concluded, are fairly […]
January 2nd, 2016 · Comments Off on Grexit! | Seeking Alpha
After having discussed reasons for Greece to stay within the eurozone, we now look at reasons for Greece to leave. There will be chaos, with an unknown dynamic and possible escalation. However, when the dust settles the Greek economy could receive a considerable boost by the end of austerity, debt. Even if Greece manages to […]
January 2nd, 2016 · Comments Off on Greece: Should I Stay Or Should I Go… | Seeking Alpha
Greece faces a monumental decision whether to accept the Troika’s latest offer, embark on brinkmanship to coax a better one, or default on its debt and likely leave the eurozone. Here we look at the pros and cons of leaving the euro in a dispassionate economic way, describing the main arguments. First up, the arguments […]
January 1st, 2016 · Comments Off on For A Few Euros More | Seeking Alpha
The $2 billion difference in the positions of Greece and its creditors seems to suggest that an agreement is within reach. However, since the creditor demands have not changed in substance, only in degree, accepting creditor demands would almost certainly confine the Greek economy to many more years in semi-deflationary slump. Such a situation would […]
January 1st, 2016 · Comments Off on Has The IMF Gone Rogue? | Seeking Alpha
Both sides on the Greek debt negotiations have made grave mistakes. Greece has been extraordinarily profligate until the financial crisis and has done too little in terms of structural reforms. The creditors should recognize Greece will not be able to pay back its debt and the imposed austerity has been counterproductive even on its own […]
August 29th, 2015 · Comments Off on Victorious Draghi?
The rebound in eurozone economic performance, financial markets and the slide in the euro suggests that the ECB has managed to get the eurozone out of the deflationary rot. However, the picture is considerably more complex as there are other factors at work. The main question is, can the party on the euro markets continue?
June 14th, 2015 · Comments Off on The Stalemate In Greece Cannot Last
Because of the wide differences of positions between Greece and its creditors, positions are hardened by the respective electorates, which provide little room for maneuvre. Therefore, any outcome of the negotiations will likely be a fudge that allows both parties to save face and face less wrath of their electorates. However, a fudge is dangerous […]