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| Europe |
| 45 billion Euros 'Not enough to rescue Greece' |
| 2010-04-25 |
| Even 45B Euros will just delay the inevitable. There is no point in the future when Greece's debt stops growing. It's merely a matter of how fast it grows and how soon they default. And over the last week the finacial markets seem to have woken up to this fact. Greece is now paying as much to borrow as that paragon of fiscal and political stability, Pakistan. Talks over Greece dominated annual International Monetary Fund and World Bank meetings, a day after Athens bowed to market pressure and asked to tap a rescue package from the European Union and the IMF. "Some countries think it's not enough," Canadian Finance Minister Jim Flaherty told reporters when asked about the amount of aid being negotiated. "Some of the G20 countries, including some of the European countries," he said when asked which countries were concerned. "There is concern about making sure that the package is enough so that it's a one-time event." Flaherty said Group of 20 rich and emerging nations agreed that the Greece crisis could be contained, if dealt with quickly, with little risk of a spread across Europe. |
| Posted by:phil_b |
| #12 It builds character to practice being good, Shipman dear. If you simply must, send it to me as an email, instead. |
| Posted by: trailing wife 2010-04-25 18:45 |
| #11 :) Nothing! I say nothing! O... pls, pls, pls, just for 48 hours Fred? |
| Posted by: Shipman 2010-04-25 13:35 |
| #10 We have plenty of Greece problems going on in the U.S. Problem here is that it's very easy/tempting/inevitable that these problems will be federalized, with the cost quietly spread out across the nation. Ironically, America's federal-state bailouts have less transparency than the EU's bailouts of its member states. Economist and investment manager David Malpass has more here. Gist: If we knew today that Congress, New York or California would roll back spending, we might be cautiously optimistic. However, when governments negotiate budgets the taxpayer usually takes a backseat. More likely is the Greek model, in which government spending cuts generate such massive public protests that the politicians engaged in the negotiation concede, providing little true reform. Like as not, our large, cheaply financed federal government will be generous to cash-strapped state and local governments. The defense is that it's the taxpayers' money, and the debt won't have to be paid for years. Live a little Longer term, the critical question is what the interest rate will be to finance the new mountain of federal debt. Will the $20 trillion in national debt be financed at today's 4% rate or will it require 7%? It matters a lot to the budget and financial markets. In the near term the financing rate depends on the Fed (though it denies that it controls bond yields). Over the next few years, however, the financing rate will depend on the market's perception of the U.S.' ability to pay all the debt on time and with dollars that still have value. . |
| Posted by: lex 2010-04-25 13:35 |
| #9 Even 45B Euros will just delay the inevitable. You can throw money at the a failed state but it won't get any better unless the root causes of its failure are addressed. We have plenty of Greece problems going on in the U.S. |
| Posted by: JohnQC 2010-04-25 09:39 |
| #8 We soon get to see what happens when the boat has a California + Illinois + Michigan + New York sized hole in it... |
| Posted by: M. Murcek 2010-04-25 09:20 |
| #7 I have only this to say "Government does not solve problems; it subsidizes them.": Ronald Reagan(PBUH) |
| Posted by: Bright Pebbles 2010-04-25 09:16 |
| #6 Tomorrow is another day. |
| Posted by: Nimble Spemble 2010-04-25 08:29 |
| #5 Flaherty said Group of 20 rich and emerging nations agreed that the Greece crisis could be contained, if dealt with quickly, with little risk of a spread across Europe. Still only delaying the inevitable. Most of Europe is in the same boat. They are borrowing more than they are making. |
| Posted by: DarthVader 2010-04-25 08:16 |
| #4 When the rowboat has a grapefruit sized hole in the bottom, you aren't going to have much luck bailing it out with a Dixie cup. You have to plug the hole. |
| Posted by: Anonymoose 2010-04-25 08:01 |
| #3 Only proving once again, there is no fixing stupid. |
| Posted by: Besoeker 2010-04-25 07:58 |
| #2 Someone really should introduce the Greeks to the work of Plato. |
| Posted by: Bulldog 2010-04-25 05:57 |
| #1 Why am I reminded of the saying "Reality is what kills you if you don't pay attention."? |
| Posted by: g(r)omgoru 2010-04-25 04:53 |