On Monday, European finance ministers are expected to approve the latest bailout package for Greece, which last week got more-than 85% of its creditors to agree to "voluntary" haircuts on their Greek debt.
The resulting restructuring is the largest for a sovereign nation in modern history, and the first since the adoption of the euro in 1999, but did avoid a messy, disorderly "credit event." But a default by any other name is still a default.
The EU has probably bought itself "several more months," thanks to the Greek restructuring and the "radical measures" adopted by the European Central Bank, says Steve Forbes, chairman of Forbes Media. "You can keep kicking" the can down the road, "but crises emerge."
Notably, Greek debt is trading in the so-called "grey market" as if Greece will fail to make payments on its newly restructured debt and Portuguese debt yields have risen sharply in the past week.
In sum, Forbes fears European policymakers have failed to take the "right" lessons fromRead More »from Europe’s “Going in the Wrong Direction,” Forbes Says: “The Worst of Both Worlds”