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Vee Haf Vays Uf Making You Pay!

posted by Adam Levitin

Anna Gelpern's Gunboat Diplomacy post pretty much sums out the leaked German term sheet on Greece. I would only note one other thing--the highly idiosyncratic use of "absolute priority." The Germans seem to have taken the language of Chapter 11 and repurposed it, with absolute priority meaning foreign unsecured creditors get paid in full before anyone else sees a cent. Of course, maybe the Germans really do know how to get blood out of a stone.  But in the meantime, I think this is best referred to as Teutonic priority.  


The "leaked German term sheet" is yet another trial balloon. Would expect a blog such as this would appreciate the manner of negotiations - always ask for far more than you expect to get.

Never the less - thanks - I really like this blog.

I didn't say anything about who leaked it or why. Nor, given the way the Greek debt crisis has run, would I assume super-sophistication. It's actually surprising how foolish some of the parties have been.

In August 1914, Germany sent the Goeben and Breslau to Constantinople to make sure the Ottoman Empire toed the line. Finance has become the preferred battle cruiser.

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