Friday, May 7, 2010

Here We Go Again, Another Announced Rescue Plan Without Details

Jan Strupczewski and Ilona Wissenbach of Reuters report:
Euro zone leaders decided on Friday May 7, 2010, they will have special measures ready before financial markets open on Monday to prevent financial turmoil in Greece spreading to other countries such as Spain and Portugal.

The leaders of the 16 countries that use the single currency said after talks with the European Central Bank and the executive European Commission they were ready to take whatever steps were needed to protect the stability of the euro area.

"We will defend the euro whatever it takes. We have several instruments at our disposal and we will use them," European Commission President Jose Manuel Barroso said after a euro zone summit in Brussels.

He declined to give any details of the proposals, which will be presented to all 27 European Union finance ministers for approval on Sunday.
Whatever they announce they have two real options:

1. Defaults by the countries that can't pay their debt

2. Or the printing of money that will bailout the financially deteriorating countries, but will cause huge inflation.

(Thanks to the Yen Guy)

1 comment:

  1. Europe talks up its American-owned bazooka shield in hopes that it'll never have to fire it, for if it does, it'll likely result in several contagion-nukes slipping through the net and wreaking havoc on select, decrepit old historical European landmark markets.