The Continuing Crisis

Saturday, October 29, 2011, 11:12 AM
Enroll NowFor enrolled members only. Enroll or Sign in to read the full article.

The market rally in response to the European bailout of Greece seems a bit premature, if not overdone.

To their credit, unlike in the US where banks were made whole for their losses, European leaders reached a compromise where bondholders and Greece both took losses. To be fair, in the final accounting, so will the general populace of Europe, to some degree. So it was kind of a shared pain with some of the sharing designed to come later.

Banks that are holding the majority of the bonds have to first eat 50% of the value of those bonds and then raise a lot of capital in part to cover this shortfall.

Unfortunately, the fix solved very little.


Enroll Now
Or Sign In with your enrolled account.
Endorsed Financial Adviser Endorsed Financial Adviser

Looking for a financial adviser who sees the world through a similar lens as we do? Free consultation available.

Learn More »
Read Our New Book "Prosper!"Read Our New Book

Prosper! is a "how to" guide for living well no matter what the future brings.

Learn More »


Related content

26 Comments on The Continuing Crisis

Enroll now or Sign In to read all member comments.