Really, it's just like a bankruptcy, is it not?
European leaders are negotiating a deal that would lead to unprecedented outside intervention in the Greek economy, including international involvement in tax collection and privatisation of state assets, in exchange for new bail-out loans for Athens.
People involved in the talks said the package would also include incentives for private holders of Greek debt voluntarily to extend Athens’ repayment schedule, as well as another round of austerity measures.
Officials hope that as much as half of the €60bn-€70bn ($86bn-$100bn) in new financing needed by Athens until the end of 2013 could be accounted for without new loans. Under a plan advocated by some, much of that would be covered by the sale of state assets and the change in repayment terms for private debtholders.
The creditor takes a haircut, the debtor sells everything that isn't completely nailed down, and the court runs the debtor's life until the debts are all discharged.
It's a bankruptcy, pure and simple.
But, we dare not use that word, now do we?
This is what awaits us, sooner or later, in the US, if we don't develop the will to turn ourselves into a productive economy whose government exercises restraint in spending, legislating, and regulating. Only it's China toting the note. Do we wish to surrender large parts of our country and economy to the Chinese?
Really?
It will be interesting to see how this plays out in Southern Europe...
No comments:
Post a Comment