Not for the first time during the slow-motion car crash that is the euro zone’s fiscal crisis, policy makers are tying themselves in knots in an effort to minimize collateral damage.
They fret over whether ratings agencies and other self-appointed market regulators will define investors’ participation in a new Greek funding package as a default.
But they can only avoid a restructuring of Greek government bonds held by private investors if they are prepared to fund the government for an open-ended period, and accept a huge write-down of their own loans.
Πηγή: The Wall Street Journal