Greece gets minimal EU bailout

Post #324,469 by jay 4/12/10 9:15:55 AM Reply	Greece gets minimal EU bailout http://www.bloomberg...&sid=at1ABnoS7f8Q The euro advanced the most in seven months versus the dollar after Europe offered Greece a rescue package worth as much as 45 billion euros ($61 billion) at below-market interest rates. This is not much of a bailout, just enough to ensure the Greece doesn't default over the short term. Greece is still going to have to do some major work on their economic situation to get it under control. This will cause some serious pain and there are sure to be riots along the way, but getting back to a sensible and honest budget is a worthwhile goal. Jay
Post #324,473 by drook 4/12/10 10:21:09 AM Reply	No it doesn't "... just enough to ensure the Greece doesn't default over the short term." That's the banks getting a bailout. -- Drew
Post #324,484 by beepster 4/12/10 12:04:46 PM Reply	the >central< bank... ...that would be the government. Considering its probably the other countries and major financial institutions that are buying greek debt, its those bond holders getting a reprieve. EU rules are somewhat different...in that they have a deficit ceiling for member countries (3%) and Greece is currently very close to 13% combined with the capitalization required to maintain parity within the currency. The worry is that Greece will have to drop out of the Euro consortium...which will be doomsday for them and will seriously undermine all the work the EU has done to have the Euro in the same league as the dollar. I will choose a path that's clear. I will choose freewill.

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