Föhrenbergkreis Finanzwirtschaft

Unkonventionelle Lösungen für eine zukunftsfähige Gesellschaft

Archive for 12. März 2012

Greek Bond Swap Doesn’t End Crisis

Posted by hkarner - 12. März 2012

Date: 09-03-2012

Source: The Wall Street Journal

Most of Greece’s bondholders have bowed to the inevitable. Asked to take part in the biggest sovereign debt restructuring ever, covering €206 billion ($273.47 billion) of debt, holders of €172 billion of bonds agreed. Collective-action clauses will boost the take-up to €197 billion, 95.7% of the total, likely triggering credit default swaps. Greece should get its second bailout, and the threat it has posed to global markets should recede. But there are still some loose ends. Some bondholders chose not to tender. The €25 billion of Greek-law bonds still outstanding will be swept up through collective-action clauses. More importantly, some €9 billion of international-law and state enterprise bonds, where investors may have a stronger position, were not tendered. Greece has extended the tender for these bonds to March 23, and warned that after that, there will be no sweeteners. If holdouts remain, they will have to be dealt with. An outright Greek default on these bonds is a possibility, since it no longer poses a systemic problem. Den Rest des Beitrags lesen »


Posted in Artikel | Verschlagwortet mit: , , , , , | Leave a Comment »

Repressionomics – can ‚financial repression‘ solve debt crisis?

Posted by sschleicher - 12. März 2012

BBC News, 8/3

Even as the Greek default process moves towards completion, the wider problem in the developed world is the size of the debt overhang. How to solve it?

Well first, consider the dirt storm that has been stirred up by the writing off of one country’s debts – a country whose entire GDP makes up 2% of eurozone GDP – near meltdown of the G20 summit; numerous riots, deaths, political chaos.

Now consider this: the combined public, household and corporate debts of selected countries:http://www.bbc.co.uk/news/business-17301032

The chart is out of date of course – Greek government debt alone is above 200% of GDP now, and in the United States the same figure should be 100%, not 84%.

The analysts who drew this up, at Boston Consulting Group, concluded that it would be impossible to write down these debts to a sustainable level (60/60/60, making a combined total of 180% of GDP).

They concluded that the austerity demanded would be too hard to bear politically, and that the likely outcome would be a turn to „financial repression“ plus inflation. Den Rest des Beitrags lesen »

Posted in weitere Artikel | Verschlagwortet mit: , , , , | Leave a Comment »

When Does ‘It Will Hurt the Poor’ Outweigh ‘It’s Good for the Environment?’

Posted by hkarner - 12. März 2012

Author: Ed Dolan · February 24th, 2012 · RGE EconoMonitor

“Nearly every environmental policy hurts the poor the most,” say Iain Murray and David Bier of the Competitive Enterprise Institute. Writing recently in the Washington Examiner, they don’t limit their criticism to absurdities like federal tax credits for the $100,000 plug-in Fisker Karma (“a bold expression of uncompromised responsible luxury.”) The two analysts have it in for any environmental policy that would raise the price of anything—cap-and-trade programs for carbon emissions, clean energy mandates, light bulb regulations, the works.

To be sure, some of the policies they list have their flaws, as I would be the first to concede. What I would like to focus on here, though, is when “it will hurt the poor the most” is an independently valid objection to otherwise sound, market-based environmental policies. I am inclined to say that it never is. Here is why:

“It will hurt the poor” is usually a smokescreen for some other interest Den Rest des Beitrags lesen »

Posted in Artikel | Verschlagwortet mit: , , | Leave a Comment »