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ECONOMICS – FINANCE – WORLD NEWS – GREEK DEBT

Stimuli and mercantilism. That’s Europe for you.

There won’t be a news brief tomorrow, 13 March 2012.

After the Greek bond swap went through with less than 90% participation of private investors; those who didn’t want to play ball were forced into it by use of collective action clauses (CACs). In return, $3.2bn worth of credit default swaps were activated. Here is how that works.

So Greece avoided involuntary default and the evil investors got a taste of their own medicine (…), but as Felix Salmon wrote on Thursday,

This is important to remember: just because bondholders are taking a haircut, doesn’t mean this isn’t a bailout.

The EIB (European Investment Bank) is looking to give Greece another €1bn stimulus; the country is also entitled to another €20bn of structural funds from the EU, to be used for regional development until 2013read article and on to other matters, such as Spain, Portugal and Italy…

Meanwhile, Evangelos Venizelos, the current Greek minister of finance, who has the charisma of a potato, confirmed that he will run for the office of prime minister in the April elections for the socialist party PASOK. His main competitor, conservative Antonis Samaras, is currently ahead in the polls.

On another note, does anybody else think £1 is a lot of money for a cucumber from Tesco? What is the world coming to…!

Nicolas Sarkozy gave his re-election campaign a touch of old-school mercantilism over the weekend. He called for more trade barriers to boost domestic production and build France up again from the inside out. Arguably. Oh yeah, and he also wants to halve immigration influx. According to Reuters, Sarkozy has the worst popularity rating of all French presidents everread article

And finally, don’t hate the banker for his bonus, he’s just a herd animal (credit to Andrew Oswald of the University of Warwick). read article

So long.

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One Response

  1. […] drought that I already ridiculed yesterday (hands up who got rained on this morning). Back to £1 cucumbers it is. read […]

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