Although there is a lot of important economic news coming out of the US each day this week, the market may get more volatility from European news. Greece is still a major drag on Europe (but gee, it was bailed out at least twice) and several other countries are growing tired of it.
From the Wall Street Journal we learn the following and the whole article can be found here…
http://online.wsj.com/article/SB10001424053111904199404576536362512060274.html?mod=googlenews_wsj
Greece has moved away from attempting to reach a bilateral deal with Finland, under which it would have provided collateral in exchange for fresh aid, Ms. Merkel told German newspaper Bild am Sonntag.
“The creditworthiness of the country would suffer further” if some aid is collateralized and other aid isn’t, Ms. Merkel was cited as saying by the paper on Sunday.
The proposed bilateral collateral deal between Finland and Greece was effectively taken off the table last week after several euro-zone member states, including Germany, opposed it. Officials from the 17-member currency bloc held talks last week in an effort to find a new solution that would be acceptable to all euro-zone members. Talks are expected to continue this week.
Finland’s collateral demands have opened a new rift within the currency bloc, threatening to derail a second €109 billion bailout package for Greece. Under the bilateral deal, Greece would provide several hundred million euros’ worth of cash collateral to Finland in exchange for the Finnish contribution to the bailout.
CSU leaders are set Monday to discuss a paper co-drafted by CSU General Secretary Alexander Dobrindt that rejects a so-called common “economic government” for the euro zone as recently suggested by French President Nicolas Sarkozy, and implied in Ms. von der Leyen’s proposals.
The paper contains other explosive ideas. CSU leaders, according to Der Spiegel, consider creating a bankruptcy procedure to kick out of the euro countries that aren’t willing to stick to the debt limits laid out in the euro zone’s Stability and Growth Pact.
Despite the internal squabbling, Ms. Merkel told Bild that her current center-right government will stay in power not only until the next elections in 2013, but beyond. The coalition currently trails the opposition Social Democrats and Greens by a wide margin in recent opinion polls.
Ms. Merkel also said she is confident she will persuade lawmakers from the CDU and from her junior coalition partner, the Free Democrats, to approve changes to the euro zone’s rescue fund.
Ms. Merkel also told Bild that common bonds for the euro zone are the wrong measure to overcome the current debt crisis.
Trade well and follow the trend, not the so-called “experts.”
Behold the age of infinite moral hazard! On April 2nd, 2009 CONgress forced FASB to suspend rule 157 in favor of deceitful accounting for the TBTF banksters.
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