Tuesday, May 18, 2010
Greek Myths and the Euro Tragedy
Wall Street Journal
May 18, 2010
Last week the Greek bailout ballooned into a gargantuan 750 billion euro (nearly $1 trillion) debt stabilization fund, including a $39 billion line of credit from the International Monetary Fund. This coincided with the European Central Bank (ECB) announcement that it would immediately begin purchasing junk-rated Greek debt.
It won't work. The problem isn't liquidity, psychology or speculators. Germany and France simply cannot borrow or tax enough to cover Europe's debts and looming deficits.
Posted by Yulie Foka-Kavalieraki at 11:35 PM