Loans and Finance

Loans and Finance

Text

News and information about loans, money, debt, finance and business issues.
Powered by Investing.com

Monday, April 12, 2010

Dead Cat Bounce

The Euro "enjoyed" something of a dead cat bounce today, as markets temporarily offered it respite after the announcement of the Euro30BN and the International Monetary Fund Euro15BN bailout plan for Greece.

The Eurozone finally agreed agreed to bailout Greece via three year loans at 5%, less than the real market rates.

Ironically even those countries that are also close to financial ruin (Spain, Ireland and Portugal) are being forced to contribute to help Greece.

It is now down to Greece to draw down the loans, and for individual member states not to veto the loan agreement.

This is of course only a temporary respite. The "rescue" package merely increases Greece's debt, and puts off the day when the country pas to pay the price for it misfeasance.

The real world solution is for Greece to exit the Euro and allow its currency to collapse.

Be under no illusions, Greece will be forced out of the Euro.

No comments:

Post a Comment