So the figure agreed in Ireland is apparently EUR 85 bln…now just left to be worked out is the interest rate. Rumors circulated yesterday that the rate would be 6.7%, about what Ireland could have borrowed at in the market on Tuesday…not much a deal, that…
Remember in the spring when the EU came up with their “shock and awe” trillion dollar package to save the euro? The idea was that if the EU/IMF put together a big enough package “speculators” wouldn’t dare challenge them. Wrong!
Well, $266 bln down and we’re not even close to back-stopping the “big dog” in this hunt, Spain.
The point to bring in the IMF was supposed to be to prove “tough love” that the EU did not have the discipline to dispense on its own… Six months later, the IMF’s strictures are being watered down as the terms of the Greek bailout are ripped up and softened.
So much for saving the euro…Rendering it permanently impaired is more like it.
Maybe that was the idea all along…
