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Friday, February 12, 2010

The Greek Tragedy II

The Euro continues to take a battering, despite a "promise" from the EU that some form of rescue package will be mounted to save Greece from economic implosion.

The offer of solidarity, that contains precious little detail as to what that support actually means, failed to impress the markets.

The fact that the EU has zero experience of rescuing failed states, does not help the situation. The markets would have preferred an intervention by the IMF. However, pride on behalf of the EU prevents them going cap in hand to the IMF.

As to whether any rescue package actually works or not in the long run, is open to question. Saving Greece will guarantee that others line up with their begging bowls; ie Spain, Portugal, Ireland etc.

The rescue will be ruinous, and will most likely cripple the EU for the foreseeable future.

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