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December 13, 2008


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I had an interesting discussion on this topic today with a colleague who happens to be a native Ecuadorean and an economist. Alas, it is too large to fit in this blog margin.

One thing, though. I mentioned this point:

"Alternatively, should a second Great Depression really emerge, then early default will seem like a brilliant move."

-- and he said yes, but that cuts both ways: creditors who are worried about later sovereign defaulters will be /that much more motivated/ to get totally medieval with Ecuador right now.

Doug M.

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