1ac3a50246f86fbc09c75929_tb0586c.jpg Tim Brinton

The Battle of the Bonds

Every week, the preposterous coterie of European bankers and finance ministers drags itself from one capital to another to discuss which default/restructuring plan to adopt. No one who is not well versed in financial legerdemain can make much sense of the various schemes, but behind them lie two moral attitudes, which are much easier to grasp.

LONDON – Everyone knows that Greece will default on its external debt. The only question concerns the best way to arrange it so that no one really understands that Greece is actually defaulting.