Wednesday, March 31, 2010

Greece Heads Back To Square One As EU's Bazooka Was Nothing More Than A Water Pistol

Europe's rescue plan for Greece is now back at square one. The reason the plan failed is there never really was a plan to begin with, just bazooka talk.

Please consider Greece May Be Heading Back to ‘Square One’ on Aid as Bonds Fall http://www.bloomberg.com/apps/news?pid= ... 6xzA&pos=7

Europe’s week-old rescue plan for Greece has so far failed to do what its leaders predicted: reduce borrowing costs for the region’s most indebted country.

The yield on 10-year Greek government bonds has increased 24 basis points to 6.522 percent since EU leaders agreed to the aid blueprint on March 25. That’s the highest in a month and more than double the rate paid by Germany. Seven-year bonds sold by Greece on March 29 fell for a second day yesterday.

“What they were hoping for was to set up some sort of arrangement that never has to be used,â€