Friday, July 22, 2011

Early reactions to Greek Bailout 2.0

Bloomberg TV has just completed an interesting interview which will be linked here once available. In summary the interviewee, Mr Buiter, of Citibank, stated that if the ECB is allowed to intervene in secondary markest pending the legal re-structuring and re-financing of the EFSF, to allow that fund so to do, the crunch for the Euro Zone could have been defrred to September as a result of yesterday's meeting.

If this is not the case and the ECB continues to be unable to provide support for Spanish and Italian bonds, then the whole thing could collapse as early as next week.

My impression, watching the interview, was incredulity at the smug self-satisfaction as the banks are laughing all the way back to their offices, knowing once again that Europe's taxpayers will take the hits, while bankers continue their excesses.

How long Europe's voters will continue to tolerate these outrages remains to be seen? What happened to all the dire warnings of one year ago when a Greek default was seen as a complete disaster for the euro zone.



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