As Tyler Cowen at Marginal Revolution, who I frequently hat tip, asks:
The Big News from Today
Tyler Cown, Marginal Revolution, 25 January 2013
Recall that before Lehman Brothers went down it was Bear Stearns that they rescued first. They got so much grief over that rescue, that they thought they could afford to let Lehman go: that is was not essential.However small a country it may be, does anyone at this point want to be on record setting any number of precedents, one way or the other?...“Creative ambiguity” is getting harder to manage all the time. What would a depositor haircut here imply for Greek and Spanish banks?
We shall see. In my opinion, it will all have to be let go at some point, but what king of landing you have is an option.