Financial markets rallied around the globe Monday as investors saw the first glimpse of real hope for containing the European debt crisis. Problem was that the lead advocates of the deal, the IMF’s Christine Lagarde and the European Commission’s Olli Rehn, are bureaucrats who don’t have to answer to electorates every few years.
Decidedly not on board were the actual governments of the 17 euro-zone nations. Euro-zone finance ministers came home from Washington doubting they could sell more risk to voters already grumbling at past and present tax money being put behind insolvent state treasuries in Greece, Portugal and Ireland.
One Reply to “EU Super-Bailout Option Slips Away – WSJ”
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Problem with good intentions vis-a-vis Lagarde is that’s all they are, in the same briefing she also said that the IMF would have to raise the funding for the Super Bailout Fund which means they do not have the funding already in place – good luck with that!
Raising these additional (substantial) funds will not happen today, this week, this month and maybe not this year, so the quagmire deepens.
Debt is Debt and it does not go away unless it is written off, pouring more water into a bucket with a hole in it will never fill the bucket to any level.
The true feelings of the ordinary “Joe Soap” in the street will be well and truely known when one of the Euro member states has to put proposals to a referendum unless the manage to circumvent the process too!
From the mood in Ireland, there will be no repeat of the Lisbon Treaty debacle,” if you don’t get the right answer first time, keep having referendum’s until you do”, fool me once shame on you, fool me twice shame on me!