CONTRARIAN investors love terrifying headlines. The more unloved the country, the more undervalued its assets and the more money to be made as its fortunes turn. Moneymen who shrewdly exploited the on-again-off-again panic regarding Greece’s finances have made handsome profits in recent years. In the second half of 2012, for instance, holders of Greek government bonds doubled their money. In the second half of 2013 the main stockmarket index rose by almost 40%. It is striking, therefore, how hard it is these days to find financiers willing to make any bets on Greece at all.
The country is once again running out of money. On April 24th euro-zone finance ministers are due to meet in Latvia to decide whether to provide a lifeline by disbursing the last instalment of the existing bail-out package. The problem is that Greece’s new government has refused to implement reforms promised by its predecessor, and has not proposed alternatives its creditors consider adequate. Talks continue, but the two sides remain far apart. If Greece does not secure more cash, it will soon have to default either on its own citizens (see...
from The Economist: Finance and economics http://ift.tt/1DmQVCG
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