Sunday, May 08, 2011
Why oh why did'nt they take the Blue Pill? Much bigger packages were needed, as the original ones simply time-buyers that bet on the return of Economic Growth. Now its deeper and deeper into the rabbit hole, and whatever shred of credibility the ECB had is gone.
(from the Sydney Morning Herald)
Euro debt crisis deepens Gareth Hutchens
May 9, 2011
Greece has flagged the need for more help to deal with its sovereign debt. Photo: Reuters
FRESH concerns about Greece defaulting on its debt sent a wave of panic through global debt and currency markets at the weekend, prompting a warning by Mike Smith, the chief executive of ANZ, that global credit markets face a period of renewed turmoil.
Financial markets are set to be buffeted from all sides this week as investors grapple with inflamed European bond markets, fallout from Treasurer Wayne Swan's budget and the release of key employment data.
Europe's leaders tried to prevent panic late on Friday after it emerged that Greek officials had approached European finance ministers at an unscheduled meeting in Luxembourg to plead for more help in tackling their €327 billion ($A437.7 billion) sovereign debt pile - a figure which equates to 160 per cent of national output.
Advertisement: Story continues below Currency markets were rattled after claims that Greece's debt burden could force it out of the currency union - something that was rejected by officials.
The euro fell sharply against the US dollar to $1.4337 in New York. The Australian dollar finished firmer