Friday, February 17, 2012

Greece is bankrupt

The Grand Myth About Greek Solvency
Independent Institute Senior Fellow Alvaro Vargas Llosa points out that no matter the austerity measures instituted by Greece, the country remains insolvent.
While the austerity measures recently approved by the Greek government may be very real, the notion that these belated actions can keep Greece from default is every bit as fictitious as the “Theogony” of the Greek epic poet Hesiod.
The reason is simple: because Greece has been in default for quite some time. Greek sovereign bonds are in fact a myth. To say otherwise is an exercise in Hellenic myth, not the kind of honest reporting that belongs on the business and financial pages.
The current negotiations between Greece’s private creditors and the Greek government (really, the European Union) – aimed at finding a solution to the more than 14-billion-Euro debt that will mature in March – is therefore fiction.
Comment: All finance is fiction.

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