We have seen in the last article that the situation in the euro area is still critical. Despite the meeting of France and Germany, we need to find a direction unique and valid to make so that you can get out in the best and fastest possible from this crisis, especially avoiding the contagion spreads and affects the larger countries, such as’ Italy or Spain.
What is needed is a European version of the Brady Plan, the debt conversion planned by the George W. Bush. This plan allowed the U.S. creditors to cash bonds that were held in Latin America, with a discount in exchange for a series of new and strong guarantees. The banks were thus able to avoid a crippling devaluation.
Continue reading Europe and the Brady Plan