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World
Angela Merkel Faces Monumental Test of Leadership After Greek Vote
The German chancellor must find a way to maintain European unity and the euro as a currency while also devising an acceptable resolution to Greece’s financial crisis.No amount of liquidity will resolve insolvency.
2
Your Money
Check Insurance Coverage When Renting a Car
Auto policies and some credit cards will often cover rentals, but such coverage can come with restrictions.My insurance does not cover rentals effectively.
I will have to take their coverage.
3
World
Video: Greece Rejects Austerity
Greek voters rejected an international bailout deal for their hemorrhaging economy.http://www.nytimes.com/2015/07/06/world/europe/greek-referendum-debt-crisis-vote.html
http://krugman.blogs.nytimes.com/2015/07/06/scattered-notes-on-the-euro/
http://www.theguardian.com/business/2015/jul/07/eurozone-calls-on-athens-to-get-serious-over-greece-debt-crisis
Greece cannot pay their debt.
http://www.nytimes.com/2015/07/06/opinion/paul-krugman-ending-greeces-bleeding.htm
http://krugman.blogs.nytimes.com/2015/07/07/debt-deflation-in-greece/
"However things play
out from here — I find it hard to see a path other than Grexit — the
troika’s program for Greece represents one of history’s epic policy
failures. Even if you ignore the economic and human toll, it was an
utter failure in terms of restoring solvency. In 2009, before the
program, Greek debt was 126 percent of GDP. After five years, debt was …
177 percent of GDP.
How did that happen?
Did the Greeks continue massive borrowing? As the chart shows, the
answer is a definite no. Greek debt at the end of 2014 was only 6
percent higher than it was at the end of 2009. Admittedly, that number
reflects a significant haircut on private debt along the way, but it was
still nothing like the continued borrowing binge some imagine.
What happened instead was, of course, the collapse of GDP — itself largely the result of the austerity program.
What this suggests is
that the troika program was simply infeasible, and would have been
infeasible no matter how willing the Greeks had been to make sacrifices.
The more they cut, the worse things got, because of Fisherian debt
deflation.
I suppose you can
argue that structural reforms might have delivered a boost in
competitiveness, but the truth is that there’s very little evidence
supporting the conventional faith in such reforms.
Some of my more
conventional contacts like to insist that Greek austerity was
unavoidable, and it’s true that one way or another Greece was going to
have to achieve a primary surplus. If currency devaluation had been an
option, this would have required much less austerity, because of the
boost from easier monetary policy; but within the euro a lot of
austerity was indeed something that had to happen. But the key point is
that the austerity ended up being not just incredibly painful but
completely futile, because it wasn’t accompanied by massive debt relief.
Is this kind of futility always the case? Not necessarily; if you try to do the arithmetic
here, it becomes clear that a lot depends on the initial level of debt.
If Greece had received major debt forgiveness, it would still have gone
through hell, but with at least some hint of an eventual exit. Instead
it was pushed into a cycle of ever-worse pain without hope."
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Opinion
The Democrats’ Fractured Views on Trade
It is hard to assess conflicting arguments over trade deals, because both sides assign far too much importance to individual deals.
Business Day
Video: Merkel and Hollande Comment on Greece
In a joint appearance, the German chancellor Angela Merkel and the French president François Hollande said they respected the results of the Greek referendum.Opinion
Bring Back Prostate Screening
Advanced techniques have made prostate screening more accurate. It’s time to bring it back.Business Day
Free Hotel Wi-Fi Is Increasingly on Travelers’ Must-Have List
Hotel guests, used to receiving free Wi-Fi nearly everywhere, are becoming less willing to pay the fees high-end flagship hotels charge for the service.Opinion
Why the Greeks Said ‘No’ to Bailout Terms
Readers discuss the reasons for the rejection and possible effects.Travel
Monday’s Travel News and Tips
What you need to know if you’re on a trip or planning one soon, including a renovation at the Lanesborough hotel in London and discounts on Palm Beach attractions.Business Day
Top-Selling Diet Drug Phentermine Is Cheap and Easy to Get
Phentermine, once part of the fen-phen drug combination taken off the market in the 1990s, is the best-selling diet pill today, often sold by doctors.Sports
Asafa Powell Wins at 100 Meters
Powell, a Jamaican, was the evening’s star attraction in the absence of his countryman Usain Bolt, the world-record holder, who pulled out with a blocked joint in his left leg.Technology
Reddit’s Chief Apologizes After Employee’s Dismissal
Ellen Pao, chief executive of the online message board, made an apology in a post after users took down portions of the site.World
Russian Supply Ship Is Launched to International Space Station
A booster rocket successfully launched an unmanned cargo ship to the station, whose crew is anxiously awaiting it after the failures of two previous supply missions.U.S.
Supreme Court Justices Send Signals to Request Cases They Want to Hear
The Supreme Court’s next term, which starts in October, will feature three cases brought at least partly in response to justices’ invitations.Business Day
In Health Law, a Boon for Diet Clinics
The Affordable Care Act requires insurers to pay for nutrition and obesity screening, and some doctors see a new business opportunity.Food
From the Farmers’ Market to the Freezer
A growing number of chefs are quietly employing a time-tested method of preservation to capture a taste of produce at its unadulterated peak.|
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