{"id":522300,"date":"2010-04-09T10:30:30","date_gmt":"2010-04-09T14:30:30","guid":{"rendered":"tag:www.economist.com,21005942"},"modified":"2010-04-09T10:30:30","modified_gmt":"2010-04-09T14:30:30","slug":"greece-is-the-word","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/522300","title":{"rendered":"Greece is the word"},"content":{"rendered":"

HERE was the state of things<\/a> last night:<\/p>\n\n\n\n
\"\"<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Things looked to be nearing some sort of critical point. But here<\/a>‘s this morning’s news:<\/p>\n

\n

European Union officials said they are ready to rescue Greece if needed as economists at UBS AG said that a bailout may be imminent as the country\u2019s financing costs surge.<\/p>\n

\u201cA support plan has been agreed and we are ready to activate at any moment to come to the aid of Greece,\u201d French President Nicolas Sarkozy told reporters in Paris. The EU is \u201cready to intervene,\u201d Herman Van Rompuy, the president of the 27-member bloc, was cited as saying by Le Monde today.<\/p>\n<\/blockquote>\n

And Greek bond spreads are back down to 400 basis points\u2014still very high, but considerably better than yesterday. But we’ve seen this before; European officials have reassured markets that they would step in if needed multiple times, and each time they subsequently seemed to get cold feet. And even if a bail-out is announced, it’s far from clear that the size of the aid will be sufficient<\/a> to calm markets or actually give Greece room to stabilise its debt.<\/p>\n

But what does seem notable is that the spike in Greek bond spreads has not<\/em> been associated with similar spikes for other debt-ridden European nations. That would appear to indicate that markets are not too concerned with the prospects of the Greek end-game leading to some sort of European contagion, which is the most dangerous risk of the Greek crisis.<\/p>\n","protected":false},"excerpt":{"rendered":"

HERE was the state of things last night: Things looked to be nearing some sort of critical point. But here‘s this morning’s news: European Union officials said they are ready to rescue Greece if needed as economists at UBS AG said that a bailout may be imminent as the country\u2019s financing costs surge. \u201cA support […]<\/p>\n","protected":false},"author":4534,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-522300","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/522300","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4534"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=522300"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/522300\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=522300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=522300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=522300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}