There are three points to tackle so this Wednesday we will know what happens. These are the points:
POINT A: THE GREEK DEBT.
Greece won’t be able to return all its debt. Some months ago the write-off was of about 20%. Now the talk is about 50% or 60%. These are losses that banks should accept, mostly French and German banks.
POINT B: THE RECAPITALIZATION OF EUROPEAN BANKS.
In times of trouble it is needed that the banks have more money on its shelves.
POINT C: THE FSEF INCREASED.
The Financial Stability European Facility or FSEF has to be increased. Spain and Italy may need it.
France and Germany have difficulties in agreeing in everything. Germany is not happy that the ECB buys and buys Spanish and Italian bonds. On the other hand I read that France would be happy the the EFSF became a bank. At one point I also read that France would have been happy with the EFSF recapitalizing the banks so that France should not put directly the money and in this way was putting in danger its AAA rating. The downgrading of France would not be good for France but it would not be good either for the EFSF who needs countries behind with AAA if it wants to support itself.
So this evening we will know what happens. And how we will know if the measures are good?
Well, i do not know but I imagine that one just has to see how much more one has to pay for German bonds in contrast with Italian bonds.</h2>
- The Myth of Greek Profligacy (alethonews.wordpress.com)
- The Beginning Of The European Endgame (zerohedge.com)
- Will propping up Italy weaken France? (bbc.co.uk)
- Seven-point plan to save the eurozone (const4ntinos.com)
- The ECB is not here to save the world (ftalphaville.ft.com)
- Update: Nowotny: ECB Clearly Must Not Do Monetary Financing (forexlive.com)
- EU bogged down in euro crisis (rt.com)
- New EU bailout will fuel a debt supercycle (finance.fortune.cnn.com)
- New bailout fund ‘to increase to 1 trillion euros’ (independent.co.uk)