Various Euro bills. (Photo credit: Wikipedia)
By Shawn Pogatchnik – Throughout the deepening debt crisis, European Union leaders sought to portray Greece as a unique case in special need of aid. They were proved wrong when Ireland and Portugal required bailouts in 2011.
They’re likely to be proved wrong again. And this time, the stakes are higher for the rest of the world.
New austerity-minded governments in Rome and Madrid have helped calm fears, but of far greater significance was the European Central Bank‘s decision to provide banks more than (EURO)1 trillion ($1.3 trillion) in bargain-basement loans. This unprecedented injection spurred banks to snap up battered government debt, driving up the bonds’ value and driving Spanish and Italian borrowing costs down again.
Economists warn such relief is only temporary. more> http://tinyurl.com/6odo6dk
Related articles
- Spain never so close to default, economist warns (business.financialpost.com)
- Is Germany’s Euro Crisis Strategy Actually Working? (business.time.com)
- Greece is Now Irrelevant. Watch Spain and Germany (zerohedge.com)
- Rescue creditors: Greece may miss debt target (seattletimes.nwsource.com)
- EU Proposes a Beefed-Up Permanent Bailout Fund, Stephen Fidler and Matthew Dalton, WSJ.com
