Comments on: The two-pronged Greece bailout http://blogs.reuters.com/felix-salmon/2010/06/01/the-two-pronged-greece-bailout/ A slice of lime in the soda Thu, 20 Jun 2013 06:01:09 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: DonthelibertDem http://blogs.reuters.com/felix-salmon/2010/06/01/the-two-pronged-greece-bailout/comment-page-1/#comment-15337 DonthelibertDem Tue, 01 Jun 2010 21:31:21 +0000 http://blogs.reuters.com/felix-salmon/?p=4065#comment-15337 Every plan so far in these crises seems two-pronged. I wonder if it has something to do with people hedging their bets, and trying to place themselves in position to change views and their version of history depending upon how the crisis breaks. You see this a lot in op-eds about these crises as well. There will be a very strong condemnation of some person or view, followed by an extremely qualified view put forth by the critic. There must be some kind of Game Theoretic explanation of this. Every plan so far in these crises seems two-pronged. I wonder if it has something to do with people hedging their bets, and trying to place themselves in position to change views and their version of history depending upon how the crisis breaks. You see this a lot in op-eds about these crises as well. There will be a very strong condemnation of some person or view, followed by an extremely qualified view put forth by the critic. There must be some kind of Game Theoretic explanation of this.

]]> By: HBC http://blogs.reuters.com/felix-salmon/2010/06/01/the-two-pronged-greece-bailout/comment-page-1/#comment-15328 HBC Tue, 01 Jun 2010 15:27:48 +0000 http://blogs.reuters.com/felix-salmon/?p=4065#comment-15328 Most of the fussing about this seems to come from anticipation that every bailout everywhere else in the world has to follow the same scandalously craven bank-beholden mockery of that in the United States, by rewarding bad banks for having done bad business with weak clients. I submit that it need not. Scenario: the ECB options the bad debt, then tells the shyster creditors on what terms (if any) they may expect to be repaid, but not in full and not on any old terms that suit the culprits. It's not like ECB can literally come out and say this before going va banque but, if that's their play, it would be game-changing. Most of the fussing about this seems to come from anticipation that every bailout everywhere else in the world has to follow the same scandalously craven bank-beholden mockery of that in the United States, by rewarding bad banks for having done bad business with weak clients. I submit that it need not.

Scenario: the ECB options the bad debt, then tells the shyster creditors on what terms (if any) they may expect to be repaid, but not in full and not on any old terms that suit the culprits. It’s not like ECB can literally come out and say this before going va banque but, if that’s their play, it would be game-changing.

]]> By: lemarin http://blogs.reuters.com/felix-salmon/2010/06/01/the-two-pronged-greece-bailout/comment-page-1/#comment-15327 lemarin Tue, 01 Jun 2010 14:54:46 +0000 http://blogs.reuters.com/felix-salmon/?p=4065#comment-15327 Alphaville on what amsterdammer is saying: http://ftalphaville.ft.com/blog/2010/06/01/248121/le-smp-le-bailout-francaise/ A Franco-German rift on the horizon? Alphaville on what amsterdammer is saying: http://ftalphaville.ft.com/blog/2010/06/ 01/248121/le-smp-le-bailout-francaise/

A Franco-German rift on the horizon?

]]> By: amsterdammer http://blogs.reuters.com/felix-salmon/2010/06/01/the-two-pronged-greece-bailout/comment-page-1/#comment-15326 amsterdammer Tue, 01 Jun 2010 14:46:53 +0000 http://blogs.reuters.com/felix-salmon/?p=4065#comment-15326 The French banks and insurance companies have 80 billion euros worth of Greek bonds on their books, while the German institutions have committed to keep these bonds on their books until the end of the bail-out http://www.spiegel.de/international/europe/0,1518,697680,00.html has a Part II devoted to ECB as Eurozone's Bad Bank, an unexpected and potentially threatening evolution for the Germans The French banks and insurance companies have 80 billion euros worth of Greek bonds on their books, while
the German institutions have committed to keep these bonds on their books until the end of the bail-out

http://www.spiegel.de/international/euro pe/0,1518,697680,00.html

has a Part II devoted to ECB as Eurozone’s Bad Bank, an
unexpected and potentially threatening evolution for the
Germans

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