Articles on Sovereign debt

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President Barack Obama: will his resolve stand as the debt clock ticks down?

Does Obama have the courage to stand his ground?

As the political stand-off around the US debt crisis looks set to continue into the weekend, US President Barack Obama is being tested whether he has the courage to stand his ground. Last week the President…
Republican resolve to hurt President Obama - even at the risk of default - should not be underestimated. AAP

US debt crisis: don’t be surprised if Republicans get a bit crazy

I rang some people at big banks who do liquidity and balance-sheet management to see how they are preparing for the August 2 deadline for US debt funding. They seemed remarkably sanguine. The feeling is…
Boom to bailout: Ireland’s economic implosion shows the consequences of unfettered policy. AAP

Why it pays to believe economists

This year’s Economic Society of Australia conference saw a range of strong views expressed on what Australian policy makers have managed to get broadly right (carbon tax – hurrah!) and wrong (NBN – boo…
Nicolas Sarkozy, Christine Lagarde and Angela Merkel share a joke at Thursday’s Greece bailout talks. AAP

Greece is safe for now; but could Italy push Europe over the edge?

European leaders signed off on a second, 109 billion euro bailout for Greece overnight, while also establishing what has been described as an “infant monetary fund” to intervene if the bloc’s sovereign…
Thursday’s make-or-break EU finance ministers meeting looks set to be a highly charged affair. AAP

Greece can’t be quarantined, so Europe will keep on giving it medicine

As Margaret Thatcher’s trade minister in the 1980s, Norman Tebbit devoted much of his time to dealing with the European Community – the precursor to the European Union. Routinely, at meetings in Brussels…
Despite attempts at regulatory reform, ratings agencies still act with little threat of litigation. AAP

Should investors sue ratings agencies? It’s a matter of opinion

Standard & Poor’s downgraded Greece’s sovereign debt rating by three notches on Monday, reflecting its view that it would be next to impossible to imagine a scenario where the country could restructure…
Greece would be better off defaulting on its debt than languishing under tough austerity measures. AAP

A Greek debt default wouldn’t be a tragedy

A poll of international investors last month found that 85% expect Greece to default on its debt this year. As market expectations go, that is very high. Moody’s has since downgraded Greece’s already abysmal…

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