Posts Tagged ‘ Humor ’

The Guardian is reporting that a €2 trillion Euro rescue fund has been agreed to by Germany and France, it is basically a rehash of ideas already floated through requiring a recapitalization of banks and having the European Financial Stability fund insure the first 20% of losses on bonds. This allows the EFSF to use its €400 billion to guarantee up to €2 trillion in bonds. Unfortunately we don’t know if this is anything new, whether it will be agreed to, and finally, does it really work? We have expressed our skepticism. It does mean a Greek default is on the table, and we are dubious that an orderly default is a real possibility. Hopefully we’ll know more in a few days, but in the meantime with all these reports coming out from various sources it only seems responsible to give you a primer on the British papers we keep getting our information from. Hat tip: Financial Times