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The Full Brady

BERKELEY – Financial markets are increasingly certain that a Greek debt restructuring is coming, and European policymakers fear the worst. “In the worst case,” as Juergen Stark, a member of the European Central Bank board, has put it, “a debt restructuring of a eurozone member could put the consequences of Lehman’s bankruptcy in the shade.”

But there is also a best-case scenario, where Greek debt is restructured in a way that doesn’t threaten the banking system.