The negotiations over refunding Greece

Here is one very effective understatement:

The two sides were “quite far apart” over projected cuts of 25 per cent in private sector wages, 35 per cent in supplementary pensions and the immediate closure of about 100 state-controlled organisations with thousands of job losses, a Greek official said.

Coase may yet kick in, but it looks pretty tough to me.  Here is a good post on what it means if there is no public lender haircut.


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