After Germany's decision to increase the European fund with more money the rest of the 17 members are likely to do the same before the middle of October.
It seems like Greece will default which is manageable. But now it is the much bigger problem with Italy and Spain the next thing to be worried about. These countries pay higher and higher yield every week for for their new bonds and this years turnover only for Italy is 420 billion euros.
With the new bigger fund this problem is not solved at all. The new money must pay the banks for their losses to Greece and he amount to help Italy and Spain is far from enough.
I recommend this article from Reuters this morning. http://www.reuters.com/article/2011/09/29/us-eurozone-idUSTRE78Q1BQ20110929
Spain's Prime minister has left the ship, ECB boss will very soon leave for an Italian man. I cannot see any solution and it must be dealt with now. I see the possibility of bank-runs coming closer by the day.
It seems like Greece will default which is manageable. But now it is the much bigger problem with Italy and Spain the next thing to be worried about. These countries pay higher and higher yield every week for for their new bonds and this years turnover only for Italy is 420 billion euros.
With the new bigger fund this problem is not solved at all. The new money must pay the banks for their losses to Greece and he amount to help Italy and Spain is far from enough.
I recommend this article from Reuters this morning. http://www.reuters.com/article/2011/09/29/us-eurozone-idUSTRE78Q1BQ20110929
Spain's Prime minister has left the ship, ECB boss will very soon leave for an Italian man. I cannot see any solution and it must be dealt with now. I see the possibility of bank-runs coming closer by the day.
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