Private investors in Greek bonds are to take a haircut, as part of the next in an unending series of Greek bailouts. Unless you think half of their bonds' face value is far worse than a haircut. Happy Halloween!
This is simple government theft by the abrogation of law protecting property rights and contracts. It won't solve the problem, which -- as I have written -- is a retired-young, unproductive citizenry that wants German cars, Chinese cell phones, and foreign oil in exchange for... what?
This financial tactic will further discourage future investment and ensure that the return of growth and prosperity in the Eurozone will take much longer than it should. Our current experience with that is explained here.
However, that theft will also serve as a warning against tucking your money away in high-paying junk bonds issued by some half-baked social democratic government... like the progressivists want ours to become.
