We\’re often told that markets are too short term. They don\’t look far enough ahead. Only wise and benevolent governments can do that for us.
Slowly but surely, Europe is coming round to the idea of sovereign debt restructuring – an inevitability that has long been apparent to markets, but which the EU has until now steadfastly refused to contemplate. In the upside-down world of Europe’s policy elite, this counts as progress.
It\’s as plain as the nose on my face (which is indeed exceedingly plain) that Greece will have to restructure.
Markets have been saying this for some time, politicians not yet.
So, who is the more forward looking of the two?