and what stands between us and outright deflation? monopoly prices?:))
Tom Schmit
05.02.2009 20:07
It is unfortunate that you address the potential for default purely as it matters to the banks. As someone who has one of those Euro loans, I fear what would happen if my loan payment suddenly became 20% more difficult to pay from the LVLs that I get paid in. Imagine for a moment the people whose primary bill each month is mortgage (denominated in Euros) who suddenly go from having difficulty to failing to be able to pay. Defaults like these, so clearly linked to policy, might well lead to riots much worse that we saw last month. There is a very real human side to the idea of devalutation.
Danil - radenko@inbox.ru
13.08.2009 22:21
I am a bit late with commenting... At any rate, excellent article, Mr. Dombrovsky! It is good to know that there are still some people who can look at crisis in Latvia adequately and honestly. Having lived there and watched Slakteris's interview I share your opinion completely.
