Tuesday, April 26, 2011

Why Greece's Deficit Blow Out May Doom Future European Bailouts

by Gregory White

Business Insider

April 26, 2011

This morning, eurostat data showed that Greece's austerity measures have done little to tame the country's deficit. Germany's political elite are now calling for a restructuring, and they want it sooner, rather than later.

But European authorities may have waited too long, according to Waverly Advisors:

Clearly a restructure is now inevitable, but is it sellable? Probably not. Core state leaders have waited too long and are now stuck between a rock and a hard place. Any fresh "band aid" measures at this junction will be poorly received by the market, while decisive restructuring will alienate voters in Germany and other wealthy states.


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