California and Kentucky

Could we compare California’s relationship with Kentucky to Germany and Greece? Somewhat like Germany and Greece… California and Kentucky share the same currency. California has a more vib…

Leaving the Euro

Would you like to win 250,000 British pounds? Predicting that a nation’s euro zone exit would be catastrophic unless properly managed, a UK businessman has sponsored a contest. To win the prize …

Default Deja Vu

Between its independence in 1829 and 2006, Greece has had 5 defaults or debt reschedulings that occupied a total of 50.6 years.  Described by Rogoff and Reinhart in their 2008 paper and book, Thi…

Euro Deal Primer

To understand euro zone bailout plans, just think BBB. Bonds, Banks, Bailout The Bonds: If you own Greek debt, then you would be asked to accept a 50% haircut. That means you will get new Greek bonds …

Greece and Argentina

Nobody wants Greece to become Argentina. It all began with what scholars Rogoff and Reinhart called the lending boom of the 1990s. Enjoying the influx of dollars, Argentina borrowed and grew and prosp…

California and Greece

It is good to pay fire fighters and police officers generously. It is good not to raise taxes. It is good to give voters what they want and get re-elected. As Michael Lewis describes in Vanity Fair, S…

Benford's Law and Greece

Does it matter that low first digits occur more frequently? First some history. During the 1920s, Frank Benford, a physicist at GE, noticed that “one” appeared more frequently as the first…

Greek Haircuts

When people talk about haircuts and Greece, they are no longer referring to the female beauticians that retired at 50 with a generous state pension because their work was “arduous.” Instea…

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