The Greek press reports that Germany and France will buy bonds from Greece and will guarantee the purchases of others, Reuters reports. This follows on reports Friday that Germany was preparing to buy Greek debt via KfW . French state-owned bank Caisse de Depot will also take part in the purchases, the paper reported.
This action should spark a knee-jerk short-covering rally early next week, but look for the markets to soon pick apart the plan if it proves insufficient to solve the crisis or if it needs to be deployed in other euro zone countries with large fiscal deficits like Portugal and Spain.
