Well that’s reassuring Merve (or should I say Sir Merve) Well at least he’s being honest.

  • Uncertainty about exposure to Greece can lead to crisis of confidence
  • Loss of confidence is a bigger risk than direct exposure to Greece
  • Greek crisis is not a crisis of liquidity, is crisis of solvency
  • Any country with significant external sovereign debt must find way to service it
  • Two ways to do this, either fiscal transfers or improvements in competitiveness
  • Simply belief that we can lend a bit more will only buy time, not solve problems (got that right pumpkin!!!!)