Financial Engineering Will Not Save Greece

Satyajit Das: Bailing In to Bail Out – The Greek Bank Debt Exchange Proposal « naked capitalism:

"The French proposal perpetuates the lack of acknowledgment that Greece has a “solvency” rather than a “liquidity” problem. Like the EFSF whose structure has been criticised as nothing more than a collateralised debt obligation (“CDO”), it uses financial engineering techniques to defer or disguise losses in an unending game of “extend and pretend”."