Tuesday, January 24, 2012
A word on the Greek debt negotiations
It's widely heralded this morning that the EU and IMF have rejected the private creditor offer to accept a coupon rate of 4% on restructured Greek debt they hold. Inevitably, the IMF and EU know they can put a gun to private investors heads, notwithstanding the bigger risks that lurk around these negotiations. What I can't understand is the apparent cluelessness among European leaders on their seeming inability to finesse the markets by making such blatantly negative statements to the international press. Are they just stupid or don't care?