The Drama Began in Greece. Where is it Going to End?
November 15, 2011 at 07:27 AM EST
Let me begin with some observations on the basic mechanics of sovereign debt default. If you borrow $1 at a 5% interest rate, next year you’re going to owe $1.05. If you don’t pay any of it back and just roll over the debt, you’d then have to borrow $1.05 next year, meaning you’d owe [...]
