Eurozone leaders approve Greece aid package (and European Stabilisation Mechanism)

[Ghost Dog]

Source: BBC

Leaders of the 16 EU member states that use the euro have approved an 110bn euro ($145bn; £95bn) loan to Greece to prevent its debt crisis from spreading.

...

The eurozone leaders also announced proposals for a European Stabilisation Mechanism to preserve financial stability.

...

The leaders hope to have the new European Stabilisation Mechanism, which would have up to 70bn euros at its disposal, in place before markets open on Monday to prevent investor fears over Greece spreading to other countries with high deficits, low growth or low competitiveness.

Germany's Chancellor, Angela Merkel, said the mechanism would send a "very clear signal" to market speculators to back off.

Read more: http://news.bbc.co.uk/2/hi/business/8669488.stm

[bluestateguy]

1. Maybe this will calm down those screaming hyenas on the Wall Street casino

nt

[Electric Monk]

2. "Market speculators, back off." But, but, but, some DUers were blaming it all on the

Greek working class as recently as today, and calling the Greek protesters "Euro teabaggers" too :shrug:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=8285888&mesg_id=8285888

[Ghost Dog]

3. Looks like they'll be saying similar about UK very soon:

16:54 GMT, Friday, 7 May 2010 (BBC) ... The markets are concerned that a weak government might be unable to reduce the UK's high budget deficit quickly.

...

"This messy state of affairs is proving unsettling for the markets, with sterling sinking to a one-year low against the dollar and even losing ground against the euro, which has been torpedoed by the eurozone debt crisis," said Howard Archer at IHS Global Insight.

Investors are worried that a hung parliament will result in a weak government that will be unable to force through measures to reduce the UK's high borrowing levels.

"Strong leadership and consensus are required to deal with the serious threats still facing the economy," said Adam Marshall, director of policy at the British Chambers of Commerce.

...

"Politicians have postponed the difficult decisions on public spending cuts for too long already. Further delay will only jeopardise the future of the UK economy."

...

Although the UK has a much lower level of overall debt than Greece, its budget deficit is almost as high.

/... http://news.bbc.co.uk/2/hi/business/10101963.stm