Comments on: Could the EFSF engineer a Greek restructuring? A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 By: Kostas1974 Tue, 21 Jun 2011 01:45:13 +0000 this stuff ought to be analyzed from game theory. if you know that everybody is tendering their bonds and after that, Greece becomes solvent with a debt/GDP ratio of 85%, then you will want to keep the bonds and hold out for full repayment which suddenly becomes likely in this scenario.

And if i hold out, and you hold out, and everyone holds out, then nothing happens. So there isa chicken-and-egg problem here and it cant be easily solved.

On the other hand you have to admire the greek politicians for their skill at game theory. Far from being inept or incompetent, they have correctly reasoned that in case of a default the creditors suffers, not the borrower. My preference would have been to default sooner so that economy can go back to growth sooner.

By: Zebastian Mon, 20 Jun 2011 13:14:27 +0000 Banks could be “induced” by regulators to accept the offer.

–> that’s the problem the EU is facing, there is no inducing without forcing … and that would result in a “credit event”