Re: [Pen-l] The Bear Stearns of the Atlantic

[dsquared@xxxxxxxxxxxxxxxx]

related to which, the current mess in Iceland is a really good illustration of how the lack of a bankruptcy code for countries is a reliable cause of chaos.  Our prime minister has used anti-terrorism legislation to freeze Icelandic assets in the UK in retaliation for the default of the UK deposit-taking operations of Landsbanki.

best
dd


> The first implication of Wriston's aphorism is that of all entities, a  
> nation-state, with its power to tax, is of the highest  creditworthiness. And 
> second, Wriston's remark was only factually  inaccurate because of his use of 
> the colloquialism "go bust." Skip an  interest payment and you've "gone bust." 
> But going "bankrupt" is a  legally precise concept: to enter proceedings aimed 
> at resolving debt  issues with the minimum of inconvenience and loss to all. 
> Typically,  interest payments are suspended, assets are transferred to 
> creditors,  and creditors recognize that they're not going to get all they're 
> owed.
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