Greece Bailout Looks Likely

[girl gone mad]

Reports out tonight indicate that Germany and other EU partners are close to an agreement to offer loan guarantees to Greece. This would come at significant political risk since German citizens have been overwhelmingly opposed to any bailout of the "PIGS" and a bailout of Greece would increase the odds that other unstable EU nations will also have to be rescued.

From the http://online.wsj.com/article/SB10001424052748704182004575055292744721172.html?mod=WSJ_hps_LEFTWhatsNews">Wall Street Journal:

BERLIN—Germany is considering a plan with its European Union partners to offer Greece and other troubled euro-zone members loan guarantees in an effort to calm fears of a government default and prevent a widening of the credit woes, people familiar with the matter said.

The plan would be undertaken within the EU framework but led by Germany, one of the people said. German Finance Minister Wolfgang Schäuble has discussed the idea in recent days with European Central Bank President Jean-Claude Trichet, according to the person.

Mr. Schäuble told officials in Berlin on Monday that he had concluded there "was no alternative" to a rescue plan, according to a person familiar with his comments.

EU leaders are expected to discuss the situation at summit in Brussels on Thursday. A final decision on the plan may not come this week but Germany has concluded that guarantees are likely the most efficient way to prevent the spread of the debt crisis, a person familiar with the matter said.

[Hannah Bell]

1. more "loans". i think that's how greece got in trouble in the first place.

in return for some shock therapy on the workers, no doubt. kind of like haiti.