April 03, 2010

And how would US’s California stand up to EU’s Spain?

Sir Spencer Jakab makes a very valid point in “California and Kazakhstan – just who is the underdog? April 3. Sadly though, he used an oil cursed nation to make his case and that is a bit like comparing apples and oranges.

Having much experience in debt restructurings I am used to look not only at the possibilities of default but also at what could be left “the morning after”. In the case of Kazakhstan, if it goes down the tube, most likely it will disappear as the nation it never really became but in the case of California it will still be California, a vibrant state of the US that is of course unless Mexico makes an offer no one can refuse.

It would be interesting if Spencer Jakab repeated the analysis comparing the California of the US with the Spain of EU.