Sorry!! The article you are trying to read is not available now.
HOT TAGS:  

Greek Default Already Decided

Print comment Post Comments
WHAT WE'RE SEEING NOW IS JUST A DOG-AND-PONY SHOW
"The real decision made by euro-zone authorities last Sunday was not to save Greece, but to escort it to a safe house where the country’s massive debt can be cut down to size through a painful restructuring," according to Willem Buiter, a former member of the Bank of England’s Monetary Policy Committee and frequent consultant to the European Central Bank, who recently joined Citigroup as its chief economist, the WSJ blog The Source writes. "He’s not making a prediction. He’s saying the decision has already been made."

In a note distributed Wednesday Buiter said:

“A Greek sovereign restructuring with a net present discounted value haircut became unavoidable when the euro area decided not to lend to Greece at something close to the risk-free rate, but at 300 or 400 basis points over the swap rate.”

SOURCE:   WSJ The Source

TICKERS