Okay. When the OECD starts making this kind of comparison, it might be tin-hat time.
Via Bloomberg, the OECD’s Director General Angel Gurria presented the Greek crisis as, er, the ebola virus:
“It’s not a question of the danger of contagion; contagion has already happened,” Gurria said in an interview with Bloomberg television in Berlin today. “This is like Ebola. When you realize you have it you have to cut your leg off in order to survive.”
(H/T the FT’s Anjli Raval).
Well, it looks like legs won’t be lopped off just yet, if the European Commission’s latest statement on Greek debt restructuring is to be believed.
Flashes, via Reuters (emphasis ours):
RTRS-EU COMMISSION SAYS DEBT RESTRUCTURING NOT AN OPTION
RTRS-EU COMMISSION SAYS GREEK DEBT RESTRUCTURING NOT AN OPTION BECAUSE OF POLITICAL REASONS
RTRS-EU COMMISSION SAYS MAKING SOLID, RAPID PROGRESS WITH ECB, IMF, GREECE ON GREEK PROGRAMME
RTRS-EU COMMISSION SAYS EXPECTS TALKS TO BE COMPLETED IN COMING DAYS
RTRS-EU COMMISSION SAYS ALL DETERMINED TO GUARANTEE STABILTY OF EURO AREA
RTRS-EU COMMISSION SAYS MEMBER STATES USING ALL POSSIBILITIES TO SPEED UP MEASURES FOR FUNDS DISBURSEMENT
RTRS-EU COMMISSION SAYS WE WILL BE READY TO MEET GREEK NEEDS
This comes after S&P warned of 30 to 50 per cent recovery rates for investors amid its junking of Greek sovereign debt on Tuesday, which would leave European banks in a very sticky spot.
So what price the stability of ‘political reasons’, then?