27 October 2011

Are we out of it already?

The ESFS has been increased to 1 trillion euros and the Greeks will get a 50% writedown of their debt. US GDP is expanding at fastest pace, and the markets are having a blast: FTSE up almost 2.5%, DAX about 4.5% and the DOW 1.75%...

However, as Eurointelligence notes: " So is this a comprehensive agreement? Of course it is. They did what they set out to do. Will it solve the crisis? Of course, it will not. The probability that the Greek deal will come unstuck is close to 100%. " They argue that it's not clear that the Banks will meet their 'voluntary' targets (of about 100 billion euros) and if they did, it may not suffice to stabilise Greece's debt...

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