Greece Archive

The Price of Affection

By John Lumbard, CFA .... Argentina just defaulted on some of its bonds, for the very first time in 13 years. It’s their seventh default since declaring independence from Spain.  Investors kept buying Argentine bonds . . What were they thinking??? In the early 1900s the people of this bountiful land---their economy...
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Whence We Came

By James Schaefer.   The original colonists of America and Canada were risk-takers -- by definition, a self-selecting group of people -- willing to leave behind family and culture and language and all that stood for civilization to cross an ocean in search of a better life. No government handouts awaited them. That entrepreneurial spirit...
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Contagion and Eurosclerosis

By John Lumbard. The debt of Portugal has fallen in value so much that a buyer can now get a yield of 16% on long term, ten year bonds.  Portugal won't have to actually pay 16% until it has to borrow again (most likely when an old bond issue matures and...
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Don’t Throw Rocks at the Firemen

When people are in trouble they're not always willing to accept help.  Whether you're talking about an alcoholic resisting intervention, a drug addict, a wife who protects her wife-beating husband, or a homeowner who refuses to leave the flanks of an erupting Mount Saint Helens, there's never been a shortage of...
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Three Cheers for the National Commission on Fiscal Responsibility!

By John Lumbard.   The President's Commission on Fiscal Responsibility will release its findings on December 1, but recently the two chairmen--Republican Alan Simpson and Democrat Erskine Bowles---took the extraordinary step of releasing a "draft" of the "Co-Chair's proposal".  It's an end-run around the dissenting voices in the commission, and a clear statement that...
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Americans For A Balanced Budget Amendment

Alan Parks is the founder of Americans For A Balanced Budget Amendment (http://www.balanceourbudget.com/), which collects signatures and builds support for the constitutional amendment that came within one vote of passing the Congress back in the mid 1990s.  It can be done. Alan tells us that he commissioned a survey, with dollars from his own pocket,...
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Greekonomics

By John Lumbard.   Today the Boston Globe printed an article titled Greekonomics (by Thanassis Cambanis, a professor at Columbia), which describes the financial hardship that Greece has reaped as a result of decades of debt accumulation:    "Try to live beyond your means forever, and one day it'll catch up with...
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Sustainable Government

By Dan H.   As California goes, so goes the nation.  That has long been the case with fad and fashion, but lately California has been playing the role of canary in the coal mine.  The state budget is out of control, and there are no longer any easy answers.   Much...
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Peter Treadway: Debt and Deflation . . . or Inflation?

By Peter T Treadway, PhD   Historical Analytics LLC www.thedismaloptimist.com “Show me where he sits and I’ll tell you where he stands.”          Old Washington proverb   “As the buyers become less eager and the sellers become more eager an uneasy period of ‘financial distress’ follows… For the economy as a whole, the equivalent is the awareness on...
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Calling All Democrats

Your Country Needs You. By John Lumbard. The really worrying thing about the unfolding spectacle in Greece isn't the insolvency of Greece.  Low-cost loans from Germany and the rest of Europe will patch over the near term crisis.  But Germany has already stated that it will not and cannot bail out Spain and...
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