Posted on 03/20/2010 8:34:56 AM PDT by TigerLikesRooster
Markets spooked as Greek rescue plan crumbles
Europe’s rescue plan for Greece appears to be crumbling after the country threatened to call in the International Monetary Fund unless Brussels comes up with real money on acceptable terms within a week.
By Ambrose Evans-Pritchard
Published: 5:30AM GMT 19 Mar 2010
The inability of the eurozone to put together a viable package after a month of talks has dismayed markets, which thought the terms of a deal had already been agreed. Yields on 10-year Greek bonds spiked 17 basis points yesterday to 6.26pc. The euro fell two cents against the dollar to below $1.36. "The facade of unity among eurozone members hardly held for more than a day," said Beat Siegenthaler from UBS.
Greek Premier George Papandreou told the European Parliament that his country was running out of patience. It is in effect already subject to the full rigours of an IMF-style austerity plan but without enjoying any of the benefits. He said the savings from cost-cutting measures were vanishing into the pockets of bond-holders through higher interest rates.
"We have the worst of the IMF and none of the advantages. This is where Europe must come in and provide what the IMF can offer. Or Greece will have to go to the IMF. We hope that will not be necessary," he said.
"I prefer a European solution as part of the eurozone, to show the world that Europe can act together. This is not to ask for money but to have an instrument on the table to stop the speculation. We expect the EU to live up to the challenge facing it. We are a eurozone country," he said. Hungary was better off with a "free currency", able to work with the IMF outside the eurozone.
(Excerpt) Read more at telegraph.co.uk ...
P!
A lot of the funds for the International Monetary Fund came or come from the US Government. As a US citizen, I don’t want to bail out the country of Greece as I’ve already been taxed or will be taxed for failed bailouts here in the USA. Greece is a lovely vacation spot but not a good place to send loan money.
Greek Premier George Papandreou told the European Parliament that his country was running out of patience.
Not to worry, RococheT. It's all just a game. After Greece renounces its debts, the Fed will just print dollars so the banks don't lose anything. Yes, yes, I know, our dollars will be worth a bit less, but they're counting on our not noticing.
A chicken in every Greek, Spanish....Italian, Portuguese... and Iraqi pot, courtesy of USA taxpayers.
How the taxpayer normally feels: "The Productive Class said the taxes from spending measures were vanishing into the pockets of government leeches through higher spending requests."
Of course, when it happens in reverse it is a crisis.
How about just cutting some more George? Can't bear to see socialism fail?
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