Posts Tagged ‘ banking ’

Too big to jail (by Simon Johnson)

February 28, 2012
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Simon Johnson, former chief economist of the IMF, and co-founder of a leading economics blog, BaselineScenario, a professor at MIT Sloan, and senior fellow at the Peterson Institute for International Economics published recently published “Too big to jail” on project-syndicate. Though I highly recommend to read the whole article, the first paragraph sums it up quite nicely: Among the fundamental principles of any functioning justice system is the following: Don’t lie to a judge or falsify documents submitted to a court, or you will go to jail. Breaking an oath to tell the truth is perjury, and lying in official documents…

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50% debt cut for Greece?

October 31, 2011
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Reading German newspapers theses days, one of the most prominent headline reads “50% debt cut for Greece settled.” The headline refers to the latest meeting of the EU member head of states, who supposedly settled for a 50% debt relief for Greece and most notably with “substantial participation” of the private banking sector holding Greek government bonds. Why then did stock prices of these institutions surge upwards shortly after the 50% cut publication?  Here’s why: What was settled for is by no means a real 50% debt cut and was even less settled with the “substantial participation of the private banking sector.”…

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