Ricardo Hausmann on Greece
I haven't linked to this Article by Ricardo Hausmann
about Greece on my blog. I have referred to it on twitter, but I wish to have a record on the blog.
With things getting much worse in Greece (unsurprisingly) the government there still seem to be unconcerned about reality.
If the Greeks vote no then many of their banks will probably be insolvent in Euros as they will hold Greek Government Debt which is clearly not worth its face value. I haven't looked at the balance sheets, but the greek banking system has a debt as a whole of about EUR 90bn to the ECB for ELA. On the credit side they have government debt. I don't know how much. It is unclear what the discount should be, but it does not look good.
I did make this point on Yanis Varoufakis' blog, but it has not got through the censors.
Not surprising really as the government are campaigning for a no vote.