Guardian idiocy again

Seriously, is it entirely necessary to be ignorant of finance to write for The Guardian on finance?

Greece is on the verge of a breakthrough in talks with its creditors that could wipe out up to 70% of its debts and alleviate the crisis in the eurozone.

No it bloody isn\’t.

They\’re on the verge of a deal whereby some of their creditors take a 70% haircut on their debt.

But not all of their creditors take a 70% haircut.

Therefore the total debt will fall by some amount smaller than 70%.

7 thoughts on “Guardian idiocy again”

  1. ‘Liberals’ don’t get simple arithmetic.

    The BBC’s radio 5 news bulletin recently said that the cost of living had fallen because the inflation rate had dropped.

  2. Indeed, it’s only the private shareholders. Who are getting the 70% shaft from the ECB and IMF who jump the queue as preferential creditors ahead of them.

  3. Two private bondholders, A and B. A sells to the ECB, now those bonds suddenly become senior to B’s. Who would buy in that kind of market?

  4. I think, when I looked at this after the October deal, I concluded that the eventual writedown would be around 20%. Because of the low coupon the writedown may be slightly bigger, but certainly nowhere near the 70% the headline suggests. Stupid headline writers…..

  5. Boy on a bike

    Not least, Greek pension funds. All private pension holders in Greece are about to suffer serious losses on their investments. Can’t see the Greek government compensating them for this, can you?

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