In the spring of 2010 Greek debt problems headed financial news around the world as credit-rating agencies downgraded Greek debt bonds to junk status. The 300-billion-euro indebtedness was larger than the economy, that is, 120 percent of gross national product, whereas the public deficit mounted to 12.7 percent. Soon after the critical situation was revealed in its full dimensions, a rescue package was put in place, despite the initial opposition of some European Union members who hesitated to lend to a country in such a condition. Eventually the 45,000-million-euro loan materialized, and the Greek government implemented an austerity program that consisted of large reductions in spending, hikes in taxes, and pay cuts for bureaucrats. Yet expectations are bleak, and confidence in Greece’s capacity to pay is still very weak. Is the recent Greek experience useful in understanding the history of Mexico’s “London Debt”? Richard Salvucci believes so, although he warns...

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