Stiglitz Hedges His PIIGS Restructuring Position

Apparently, there must be some real behind the scenes debate over whether the PIIGS should go into default. Economist Joesph Stigliz, who always mouths the current IMF-World Bank party line , is hedging his bets on default by taking both sides on the position, in a recent article.

He writes:

But it is a bit late for the ECB to describe debt restructuring as “unthinkable.” The ECB should have done some thinking before it let this state of affairs arise.

He then goes on to say nice things about IMF managing director candidate Christine Legarad, who is completely against debt restructuring:

One of the leading candidates to be the IMF’s next managing director has turned out to be a Frenchwoman, Christine Lagarde, who, as France’s finance minister, helped lead her country through the Great Recession. She has been an outspoken advocate of financial-sector reforms, and has won the respect of all of those with whom she has worked.

Politics is not always kind to good candidates. The world should be thankful that there is at least one. Where she was born should not be an impediment to her prospects.

Putin's reported girlfriend, gymnast Alina Kabaeva, demonstrates Stiglitz's current position on PIIGS restructuring: