Emily Flitter

Emily Flitter's Profile

A spiral for Europe?

April 28, 2010

Quelling the European debt crisis will take more than just a bailout package for Greece, says one expert in financial contagion. Other countries with shaky fiscal profiles need to get their finances in order–and fast. 

 Lasse Pedersen, a professor of finance at New York University’s Stern School of Business, has made a close study of liquidity spirals in financial markets, and he sees parallels between his work and the European crisis. 

“Here the spiral is that the more concerned people will be about whether Greece can pay back its debts the higher the interest rate they will demand, and the higher the interest rate they demand the harder it will be. For instance, if the interest rate payments increase two or three times or more, it can become difficult to meet these payments even with a sound economic policy,”  Pedersen said in an interview. 

The danger that the feedback between investor anxiety and higher rates could appear in other European countries is real and needs some proactive attention, he added. 

“I do think that the contagion risk is very real and perhaps the way to stop it is for the International Monetary Fund or the European Union to already now think about making a deal with other countries like Portugal that aren’t in immediate trouble now.” 

 The other countries where high debt-to-GDP ratios have already attracted concern also need to move more quickly with reforms, Pedersen said. 

 ”These countries have to realize that the main party that has to save them is themselves–they have to have a responsible fiscal policy that means they can pay back whatever debt they have.” 

If they don’t act decisively to show they can repay their loans, no amount of outside aid will help, Pedersen added. 

“Bridge loans, if they are a bridge to nowhere, won’t help.”

Comments

Me encanta tu sección, un derroche de imaginación por todos lados. Sere asidua a esta sección sin duda! Saludos y Bss!!!

 

The new Zune browser is surprisingly good, but not as good as the iPod’s. It works well, but isn’t as fast as Safari, and has a clunkier interface. If you occasionally plan on using the web browser that’s not an issue, but if you’re planning to browse the web alot from your PMP then the iPod’s larger screen and better browser may be important.

 

I love that! It is so true, the most successful individuals have unsuccessful repeatedly. click here

 

Excellent stage, I realize. To each and every their particular

 

Hello there! I know this is kinda off topic however I’d figured I’d ask. Would you be interested in exchanging links or maybe guest writing a blog post or vice-versa? My blog addresses a lot of the same topics as yours and I believe we could greatly benefit from each other. If you happen to be interested feel free to shoot me an email. I look forward to hearing from you! Excellent blog by the way!

 

It’s a shame you don’t have a donate button! I’d certainly donate to this brilliant blog! I guess for now i’ll settle for book-marking and adding your RSS feed to my Google account. I look forward to fresh updates and will share this site with my Facebook group. Chat soon!

 

A lot of people stay caught up on fantasizing which is why they don’t succeed in their life. Obtaining the bravery to do this is critical. You can aspiration provided you want there are plenty of to get started on performing eventually.

 

Hands down, Apple’s app store wins by a mile. It’s a huge selection of all sorts of apps vs a rather sad selection of a handful for Zune. Microsoft has plans, especially in the realm of games, but I’m not sure I’d want to bet on the future if this aspect is important to you. The iPod is a much better choice in that case.

 

My Favorite:
Genius is a pct motivation along with ninety-nine per cent sweating. Manley The. Thomas edison

 

Very low appears to be myself final Thursday night nighttime. Oh yeah, the thrill of bourbon poppers!

 

This is getting a bit more subjective, but I much prefer the Zune Marketplace. The interface is colorful, has more flair, and some cool features like ‘Mixview’ that let you quickly see related albums, songs, or other users related to what you’re listening to. Clicking on one of those will center on that item, and another set of “neighbors” will come into view, allowing you to navigate around exploring by similar artists, songs, or users. Speaking of users, the Zune “Social” is also great fun, letting you find others with shared tastes and becoming friends with them. You then can listen to a playlist created based on an amalgamation of what all your friends are listening to, which is also enjoyable. Those concerned with privacy will be relieved to know you can prevent the public from seeing your personal listening habits if you so choose.

 

that’s good, thanks for sharing,.. I think this is great blog

 

that’s good, thanks for sharing,.. I think this is great blog

 

I loved your blog post.Much thanks again. Want more.

 

I cannot thank you enough for the article.Really looking forward to read more. Cool.

 

stuff prior to and you are just extremely fantastic. I actually like what you ave received

 

I really liked your post.Really thank you! Really Cool.

 

Muchos Gracias for your article post. Want more.

 

This is one awesome post.Thanks Again. Will read on…

 

Here are a few of the remarkable statistics that help to make up Charlie Bronson’s extremely intriguing background.

 

It’s fair to say that many men and women respect and revere Charlie Bronson. Regardless of whether this is right or improper is not necessarily for me to decide. But what can easily be stated practically without worry about of contradiction is that Bronson’s life and notoriety marks him out there as a distinctive character.

 

It’s fair to state that many people appreciate and revere Charlie Bronson. Whether this is correct or improper is not really for me to decide. But what can be said practically without worry about of contradiction is that Bronson’s life and notoriety marks him out there as a unique persona.

 

Magnificent beat ! I wish to apprentice while you amend your site, how could i subscribe for a blog web site? The account helped me a acceptable deal. I had been a little bit acquainted of this your broadcast offered bright clear idea

 

Magnificent beat ! I would like to apprentice while you amend your site, how could i subscribe for a blog website? The account helped me a acceptable deal. I had been tiny bit acquainted of this your broadcast offered bright clear idea

 

Thanks again for the blog.Really looking forward to read more.

 

Hello.This post was really fascinating, particularly because I was looking for thoughts on this matter last Monday.

 

Keep working ,terrific job!

 

As a Newbie, I am permanently browsing online for articles that can aid me. Thank you

 

I would like to voice my affection for your kindness for those individuals that absolutely need guidance on the area. Your special commitment to getting the message throughout has been astonishingly advantageous and has really empowered guys just like me to arrive at their desired goals. This insightful information can mean so much a person like me and extremely more to my office colleagues. Many thanks; from each one of us.

 

I really wanted to write a simple remark in order to say thanks to you for some of the pleasant tricks you are placing on this website. My particularly long internet search has at the end of the day been paid with reliable facts to go over with my classmates and friends. I would believe that we website visitors actually are truly endowed to exist in a decent network with so many lovely individuals with very helpful points. I feel somewhat fortunate to have used your entire site and look forward to plenty of more awesome moments reading here. Thanks a lot once again for all the details.

 

Attractive section of content. I just stumbled upon your web site and in accession capital to assert that I get in fact enjoyed account your blog posts. Any way I’ll be subscribing to your augment and even I achievement you access consistently fast.

 

Pretty section of content. I just stumbled upon your site and in accession capital to assert that I get in fact enjoyed account your blog posts. Any way I’ll be subscribing to your augment and even I achievement you access consistently fast.

 

Wonderful beat ! I wish to apprentice while you amend your web site, how could i subscribe for a blog site? The account aided me a acceptable deal. I had been tiny bit acquainted of this your broadcast offered bright clear idea

 

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/