sovereign debt Archive

  • The EFSF proudly announces that it is going to pay as much as possible to prop up weak banks and countries throughout the Eurozone.  The investors sit there with stunned looks on their face.  The EFSF fully enjoying how awestruck the potential investors are, explain that there are many countries and some banks that cannot receive the financing that they need because they are having cash flow problems, are over leveraged, and quite simply are in deep trouble unless someone is will to buy their bonds at aggressive prices.  As the investors finally regain their composure, they are sure they must have misunderstood.

    The EFSF Pitching Itself As A Hedge Fund

    The EFSF proudly announces that it is going to pay as much as possible to prop up weak banks and countries throughout the Eurozone. The investors sit there with stunned looks on their face. The EFSF fully enjoying how awestruck the potential investors are, explain that there are many countries and some banks that cannot receive the financing that they need because they are having cash flow problems, are over leveraged, and quite simply are in deep trouble unless someone is will to buy their bonds at aggressive prices. As the investors finally regain their composure, they are sure they must have misunderstood.

    Continue Reading...

  • Now, I used to write for the movies—I can tell you the secret to writing a good sequel: Use the exact same elements, the exact same story structure—hell, even use the exact same lines!—but make sure the sequel isbigger: Bigger sets, bigger explosions, bigger stars, bigger everything—a bigger bang for the buck.

    “The Sequel”: How 2011 Is A Repeat of 2008 – Only Bigger, Longer, and Uncut by Bailouts

    Now, I used to write for the movies—I can tell you the secret to writing a good sequel: Use the exact same elements, the exact same story structure—hell, even use the exact same lines!—but make sure the sequel isbigger: Bigger sets, bigger explosions, bigger stars, bigger everything—a bigger bang for the buck.

    Continue Reading...