How about Greece File Chapter 11?
How about debt holders convert into equity holders and get a say in the countries restructuring process, like figuring out tax rates and the budget. Afterwords, whatever is collected by the government in taxes and is left over after spending is distributed to these equity holders until their principle amount is paid back, inflation adjusted?
Sorry, I got bored and just came up with this out of no where. I know it's not feasible but would love to hear all of your inputs on a solution
What Greek equity? Also, big bond investors typically want absolutely zero to do with equity. Remember, bonds absolutely dwarf equities and credit decides almost everything in the financial space. The only half-solution (half because only like EUR20-50Bn could be raised from this) is privatization of state firms. Something the silly Greeks dont exactly want.
this makes no sense
Given that the US is not a million miles from bankruptcy itself, would you be happy if the Chinese and Japanese, who hold most of your debt, had a say in determining your tax rates and budget?
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