Still Talking About That Greece Bailout Are We?
Bend over, EU...
How many weeks have we been hearing a Greece bailout is eminent? And how many times has Mommy told you that the EU isn't going down like that?
They really should have read the fine print a bit closer - this globalization crap isn't all it's cracked up to be.
European Union officials said they are ready to rescue Greece if needed as Fitch Ratings cut the country’s credit rating to the lowest investment grade and economists at UBS AG said that a bailout may be imminent.
Germany restated its opposition to below-market rate loans to Greece as officials in Brussels hammered out details to the framework calling for joint EU-International Monetary Fund aid. European Central Bank policy makers planned a teleconference tonight, two people familiar with the matter said.
“They have to be given some help from Europe or the IMF at concessional rates,” billionaire investors George Soros said in an interview on Bloomberg Radio today in Cambridge, England. “It is a make or break time for the euro and it’s a question whether the political will to hold Europe together is there or not.”
The premium investors demand to buy Greek 10-year bonds instead of German bunds jumped to 442 basis points yesterday, the highest since the introduction of the euro. Prime Minister George Papandreou has said borrowing at those levels is unsustainable. Greece will need to seek emergency funding now to make debt repayments of more than 20 billion euros ($27 billion) in the next two months, UBS economists said in a note.
“The recent market action means that an external intervention may be unavoidable and could happen very soon as the situation is untenable,” UBS economists including Stephane Deo wrote. “An intervention over the weekend is a distinct possibility.”
See also Greece Bailout is Not a Bailout, Says Europe and No Bailout for You, Greece! Um, Right?