Comments on: Why the Greek recovery rate hasn’t fallen http://blogs.reuters.com/felix-salmon/2010/04/13/why-the-greek-recovery-rate-hasnt-fallen/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: BradleyO1984 http://blogs.reuters.com/felix-salmon/2010/04/13/why-the-greek-recovery-rate-hasnt-fallen/comment-page-1/#comment-13412 Tue, 13 Apr 2010 15:10:08 +0000 http://blogs.reuters.com/felix-salmon/?p=3364#comment-13412 As usual, I am impressed with your knowledge of a dizzying array of topics. But I wonder if the automaker bailout analogy is an apt one. During the auto bankruptcies, the Obama Administration was new and bent over backwards to make the auto bailout seem “fair” (and by that, I mean they wished to approximate a ‘normal’ BK process). The Administration was not wholly successful in preventing public outcry, but their intent was clear. In the case of the EU mess, I would imagine Greece’s repayment priorities are much different. Greece might find it politically expedient for the sake of their status as an EU member to honor loans made by their sovereign creditors, while they might see private credit as less forgiving/more fickle and therefore less worthy of a priority payout. The US government was the source of funds and therefore could not act as an “honest broker” through the auto BKs while also pushing for full repayment on its loans; Greece is the recipient of government funds and therefore does not have the same options or priorities as the US did.

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