Greek Default, Fed Rate Hike: Sell The Rumor, Buy The News


Greece is a country that peaked around 400 B.C. and is of no economic importance, even to Europe, much less the world.  On top of which, Greece has already defaulted more than five years ago.  Neither the word “default” nor the word “bankrupt” have the slightest bit of meaning if they can be neutered merely by someone providing more loans to repay the existing ones.  Indeed, a recognized Greek default might even have the salutary effect of alerting governments of the need to tailor fiscal policies so that spending and revenues bear some relationship to each other.  If European—and U.S. and Japanese– governments could learn THAT, a Greek default should qualify for the Nobel Prize for Economics.

Sourced through Scoop.it from: www.valuewalk.com

Greece is a country that peaked around 400 B.C. and is of no economic importance, even to Europe, much less the world.  On top of which, Greece has already defaulted more than five years ago.  Neither the word “default” nor the word “bankrupt” have the slightest bit of meaning if they can be neutered merely by someone providing more loans to repay the existing ones.  Indeed, a recognized Greek default might even have the salutary effect of alerting governments of the need to tailor fiscal policies so that spending and revenues bear some relationship to each other.  If European—and U.S. and Japanese– governments could learn THAT, a Greek default should qualify for the Nobel Prize for Economics.

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