WSJ: Greek
Debt Crisis Seen Getting Worse:
Financial-Aid Needs Could Top $100 Billion, Bundesbank Chief Tells
German Lawmakers; Athens Readies T-Bill Offering
Business Week: Greece
Debt Swaps at Record as Icelandic Ash Smothers Aid Talks
The Economist: Greece's
sovereign-debt crisis: Still in a spin -- A rescue by the European Union
and the IMF has given Greece some breathing space. But much more may need to be
done to avert eventual default
And, via Calculated
Risk:
From the NY Times: Greek
Debt Unsettles Bond Market
From Bloomberg: Weber
Said to Tell German Lawmakers Greece May Need More Aid
An interview with German Finance Minister Wolfgang Schäuble in Der
Speigel: 'We
Cannot Allow Greece to Turn into a Second Lehman Brothers'
Shocking news. Who
could have predicted? Time for
a replay of Lee Buchheit’s Parable of the Second Engine from my April
11 post:
I asked him [Lee] about The New
York Time’s report that European leaders sought “to quash any doubts about
their resolve to help Greece,” by offering a one-year aid package of up to €30
billion. Isn’t this so far removed, I asked, from what Greece actually
needs to make a go of it that it’s just throwing money away? Why do
this? Do they really think that’s enough? Or is this just a
political move designed to make it look like Europe actually tried to do
something, rather than standing by watching Greece tank? Is there something
here that I don’t see? In response, Buchheit told me The Parable
of the Second Engine:
Some years ago my brother started to take flying lessons. He
trained on a single-engine aircraft.
"But surely brother mine", I said to him one fine day,
"it is safer to train on a two engine aircraft in case one engine
stalls".
"Lee", he responded in that tone of voice employed by all
elder brothers when speaking to their siblings, "if one engine were to
stall in an aircraft being flown by an inexperienced pilot, there are so many
adjustments the pilot would have to make all at once that the utility of the
second engine will merely be to fly everyone to the scene of the crash".
This 30 billion, and even perhaps the 30 billion after that, may wind
up performing the function of the second engine.
Related Posts:
Greece:
Argentina, Uruguay, or Twin Engine Plane?
Greece
Updates: You Can't Blame The Mirror For Your Ugly Face
Blame
It On Derivatives, Blame it On Goldman Sachs, Blame It On the Nazis. But Don’t
Blame the Greek Crisis on Greece
The
Greek Crisis: Economic Meltdown or Mental One?
The
Modern Greek Drama: Comedy, Tragedy, or Both?
The
Modern Greek Drama, Part 2
Verge
of the Unböring (The Modern Greek Drama, Part 3)
Is
2010 The Year of Odious Sovereign Defaults?
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