“Late Thursday in Athens, Greek officials will begin the final tally of a massive debt write-down to see if enough investors have agreed to participate to allow them to declare the program a successful step on the way back to solvency, receive a new round of international loans — and perhaps put the worst of their crisis behind them. It is an epochal moment, the formal end of an era in which the debts of sovereign governments in the developed world were regarded as virtually risk-free and relied on as a benchmark investment as safe as cash.” (Washington Post)
We need more disincentives to lend to governments.
FEE Timely Classic
“Default in the Future” by Sheldon Richman