Latest Greek Bailout Talk

WSJ reports on a new scheme to bailout Greece.

This one would involve the German and French governments coming up with a total of €15 billion, with Greece raising another €15 billion in the markets.

Since, Greece needs to raise €54 billion this year, the current scheme is obviously just a stop gap measure and doesn't address the problem of the other PIIGS.

As I have pointed out before, the real test comes in July when Spain has to step up to the plate and borrow big.

Are the German and French governments going to bail Spain out also? Will the market participants be willing to pick up €15 billion in Greek debt, now?

This scheme is very shaky and points to the fact that there is no real solution to this problem short of bankruptcy.