4 ms·
Pikkety's case is essentially that debt is not sacrosanct, and that treating it as you are is counterproductive. Sometimes the creditor must share some of the
by vegabook 11y ago
Pikkety's case is essentially that debt is not sacrosanct, and that treating it as you are is counterproductive.
Sometimes the creditor must share some of the pain, in order to save (even himself) more pain down the line.
- peterfirefly 11y agoThey did. They took a hefty haircut of more than 50% (some sources say 70+%) in exchange for near certainty of getting paid, i.e. basically the rest of the EU taking over the remaining debt.
- tcbawo 11y agoI'm interested in the source(s) for these numbers, if you have them.
- tytso 11y agoPrivate creditors took a haircut. Government owned entities, including the German and French national banks did not take any kind of haircut at all. And at that time, it was clear that the debt write down wasn't enough --- but for political reasons, the German and French national banks didn't take a writedown, but instead pushed the Troika to play a game of "extend and pretend". (i.e., let's pretend Greece will eventually be able to make the German and French banks whole, no matter what the cost to Greece.)