Comments on: Disturbing fact of the day: CDS spreads on European banks http://billpetti.com/2010/05/08/disturbing-fact-of-the-day-cds-spreads-on-european-banks/ Trying to separate the signal from the noise, one post at a time. Fri, 30 Sep 2011 21:49:18 +0000 hourly 1 http://wordpress.com/ By: Bill Petti http://billpetti.com/2010/05/08/disturbing-fact-of-the-day-cds-spreads-on-european-banks/#comment-2487 Sun, 09 May 2010 19:46:18 +0000 http://billpetti.com/?p=2173#comment-2487 Thanks. Greece doesn’t have a socialist economy. There is a very large social welfare and entitlement sector, to be sure (which is a large part of the current crisis), but it isn’t a socialist state. Labor does not control the means of production and all that, etc, etc.

That being said, I am not an expert on domestic politics there so I don’t know to what extent politics and preferences will shift as a result of the crisis. On the one hand, the need to service the debt may allow an opening for a peeling back of entitlements and spending. On the other, if the demonstrations are any indication, it will be very hard for politicians to follow through on their austerity pledges. Based on some of the indicators, Greece may end up defaulting regardless of the current aid package. If that happens, it will create less of an immediate incentive to roll back spending and entitlements.

]]> By: The Credit Crunch Prophet « Signal/Noise http://billpetti.com/2010/05/08/disturbing-fact-of-the-day-cds-spreads-on-european-banks/#comment-2481 Sun, 09 May 2010 15:24:56 +0000 http://billpetti.com/?p=2173#comment-2481 [...] Disturbing fact of the day: CDS spreads on European banks [...]

]]> By: nick http://billpetti.com/2010/05/08/disturbing-fact-of-the-day-cds-spreads-on-european-banks/#comment-2457 Sun, 09 May 2010 05:12:42 +0000 http://billpetti.com/?p=2173#comment-2457 Nice bill. good article. What do you believe the current situation in Greece will have in it’s effects on socialism there?

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