Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Then what the fuck are they supposed to spend the money on?

The whole damn point of buying back your own bonds at a discount is that this increases the net social wealth, because it removes a default premium (the default premium on bonds outstanding is a cost to the bondholder but not a gain for the issuer - by buying back the bond at a discount, the issuer gets to book the risk premium as a gain... but this doesn't cost the holder anything).

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Wed Apr 6th, 2011 at 07:32:18 AM EST
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