[Marxism] Default is in theair

Louis Proyect lnp3 at panix.com
Tue Sep 20 13:27:39 MDT 2011


On 9/20/2011 3:20 PM, robert mckee wrote:
>
>
> http://thenextrecession.wordpress.com/2011/09/20/default-is-in-the-air/

I got a chuckle out of the NY Times article on a possible Greek 
default today:

"Willem Buiter, the chief economist at Citigroup, presents two 
possible default outcomes. In the first, Greece forces private 
sector creditors to take a loss on their bonds of 60 to 80 percent 
but manages to stay inside the euro zone by keeping current on the 
smaller amount that it owes its official lenders, like the 
European Union and the I.M.F."

My wife works with a Greek economist at her NYC college who bought 
Greek bonds about a year ago on the assumption that default was 
unlikely and on the expectation that he would be getting a high 
interest rate as is always the case with shaky bonds, either 
government or corporate.

This guy is also an arch-conservative! Just goes to show you that 
it is a mistake to believe your own bullshit.




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