Tim Iacono provides a video clip rehashing the latest meeting between Eurozone leaders regarding how to solve the Greek debt crisis and wider concerns for the stability of the European currency union. Politicians have agreed the European Financial Stability Facility fund should be increased to $1.4 trillion to cover capital expenses that will be faced by banks and investors that are expected to take a as much as a 50% loss in a Greek bailout. The specific financial instrument that will facilitate this is still being debated, however, and one option may involve allowing China and Middle Eastern countries to buy into the debt. For more on this continue reading the following article from Tim Iacono.
It looks like they’ve agreed to something over in Europe, though it remains to be seen whether this deal will last any longer than any of the last half dozen or so agreements aimed at keeping the currency union from breaking apart.
Investors have reportedly agreed to take losses of 50 percent on Greek debt and French President Sarkozy told reporters that the EFSF bailout fund is about to be “leveraged up” to $1.4 trillion, the proverbial “bazooka” in the EU’s pocket. It looks like they’re on a roll…
This blog post was republished with permission from Tim Iacono.