tag:blogger.com,1999:blog-3120478448417742445.post4289575288568030525..comments2024-03-24T06:35:14.281+00:00Comments on The Portuguese Economy: Reality checkEditorhttp://www.blogger.com/profile/16779405217168307855noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-3120478448417742445.post-55090188961705102752011-02-08T17:35:12.709+00:002011-02-08T17:35:12.709+00:00Assuming market eficency, I think what the markets...Assuming market eficency, I think what the markets are saying is that probably Portugal defaulting on its debt is a sound business decision....<br /><br />If not why would Portugal be riskier then Egypt?<br /><br />Correct me if I'm wrong, but in modern history, there aren't many cases of default by a developed country.<br /><br />The ones I can think about are Russia and Argentina, and those situation were due to the exchange rate.<br /><br />Now, either we are facing speculative CDR markets (on the periphery countries) or defaulting is something the markets assumes to be logical.<br /><br />Interesting, considering that the ECB and the Euro mecanisms prevent a major spread of the problems of defaulting.<br /><br />Probably, we have to look at it like when a US state defaults on its bonds, is it a major crisis?<br /><br />Ireland can't do it, because the whole finantial system would collapse, and Greece would have immediate liquidity problems, but with Portugal maybe isn't such a bad idea. Worked for Iceland.....<br /><br />Yep, that would be the BPN way...rastanplanhttps://www.blogger.com/profile/13069268139980949915noreply@blogger.com