“You cannot solve the problem with this level of financing. It’s not possible.”
Dimitri Papadimitriou, interviewed yesterday for Ian Masters’ “Background Briefing,” gets to the heart of the matter on the shortcomings of the proposals for resolving the eurozone crisis that are currently on the table. Papadimitriou argues that we’re likely looking at a default from the Greek state and that estimates of bondholders facing a 50-60 percent haircut are actually quite optimistic. He also discusses the possibilities of the “contagion” spreading to this side of the pond. Listen to the full interview here.