No Details Juncker gave no details about a possible recalibration of the âvoluntaryâ debt exchange, the new element in a package hammered out in July after last yearâs 110 billion-euro lifeline failed to stabilize Greece. The Institute of International Finance industry group estimates that the debt swap, still being negotiated, will amount to a writedown of 21 percent. âNo, no,â Spanish Economy Minister Elena Salgado told reporters today when asked about deeper writedowns. âI insist: no.â European leaders have gone back and forth over the sanctity of bond contracts as the crisis escalated. A November 2010 pledge to rule out writedowns unravelled a month later, only to be reaffirmed in July. The latest about-face came after seven countries including Germany, Europeâs dominant economy, weighed calling for Greek writedowns of as much as 50 percent, two European officials said. http://www.bloomberg.com/news/2011-...ake-bigger-losses-in-second-greek-rescue.html
I think it's human nature. People try to kick the can down the road a little further. This road is nearing its end.
Still, the height of the stupidity/insanity is quite remarkable. I hate to say it but you see more economic wisdom posted here on ET every day than we've heard from all the world's politicians, central bankers, and professional economists since the onset of this crisis. There are a tiny handful of exceptions, of course - Ron Paul and Thomas Hoenig come to mind - but I do mean a handful.