Seeking Alpha
July 5, 2011
The world banking system got through the insolvency of Latin America in the early 1980s with nothing more than a bout of extreme unpleasantness for common equity investors, for obvious reasons:
1) The amount of risk was known and measurable
2) The creditors and debtors were a well-defined group of countries and institutional investors
3) The countries themselves had earning power and assets.
This is the sort of problem that Greece presents.
The Lehman bankruptcy and the near-collapse of the financial system in 2008, though, had an entirely different profile.
More
No comments:
Post a Comment