Norway + Greece = ??

If busted sovereigns were banks, policymakers would know exactly what to do:  fold the bankrupt country into a designated “acquirer” with a strong (or at least stronger) balance sheet, which greeceis then given a package of cheap financing, guaranties, and indemnity (or maybe not) in return for straightening out the mess.


Applying the principle at the sovereign level, why not find a white knight for woeful Greece?

“Good Bank Country, Bad Bank Country”

My candidate:  Norway (population: 5 million; sovereign wealth fund:  over $1 trillion).

Sure, there may be a language and culture barrier, but think of the appeal of all those balmy, Mediterranean islands to staid, shivering Scandinavians come the winter solstice (sounds good to a Minnesotan, too!).

Greece is the more populous country (10 million), but its $375 billion national debt would barely be a hiccup for the flush Norwegians.

norwayAnd a nice diversification move away from North Sea oil, the primary source of Norway’s wealth.

Wall Street could even securitize the payments (I don’t see why the 2040 Norway-Greece bond issue shouldn’t be rated AAA.  Really).

I have no idea how the combined countries would function (the same can be said of shotgun weddings amongst banks), but, the duo would make for a helluva real estate portfolio.   🙂

P.S.:  perhaps the folks who came up with “Grexit” can be tasked with coming up with a similarly engaging name.

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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