The IMF’s tripled the size of the Greek rescue package, a necessary first step on the road to recognizing reality…
Of course, it’s still not enough money, as Portugal will require at least $100 billion, and Spain is waiting in the wings if the markets remain unconvinced.
Further contagion of this sort might end up costing $1 trillion. The lack of coherent political leadership in Euroland, most especially from the Germans, is making the problem worse.
Another unanswered question is who’ll be responsible for replenishing IMF coffers if the bill escalates further.
Answer: the US taxpayer will bear a very large burden. That’s not getting any discussion on this side of the pond, but it’s inevitable.
Gorilla says: “The Germans won’t go and the Greeks can’t leave!”
