Numerous commentators have noted that the negotiations over Greek debt are simply about kicking the can down the road and will likely just exacerbate future problems. However, the following article illuminates that the 50% haircut being considered will do absolutely nothing to solve the structural problems with the Greek economy, and much of the pain will be borne by already weak Greek financial institutions.
Also, I think it noteworthy that so little is being posted about the reaction of Greek unions to the passing of the austerity measure last week. News and opinions about the potential for continued economy sapping strikes have faded from view. Stunning that media attention has moved almost completely away from reporting on the economic meltdown in Greece and the impact of the past week's shutdown of transportation on critical economic activities including tourism.
A Haircut For the Bold or the Bald
How difficult will it to get the U.S. back to a balanced budget? As pointed out by Karl Denninger, the size of the cuts required seems overwhelming. And despite the Republican's attempts to pin all the blame on Obama, the party cannot escape the culpability of Republican legislators and presidents for the explosion in U.S debt.
The Republicans Bear Present UNITARY Responsibility
Barry Ritholtz posted an interesting synopsis a couple of days ago from an interview with Felix Zulauf. Given that he has a pretty good track record, the interview makes for an interesting read.
Felix Zulauf: The Die Is Cast