Wall Street Journal (May 5)
Like the market, the Wall Street Journal is calling the €110 billion Greek rescue package “a flop.” Contagion has continued to spread with the euro sinking in value and European stock markets down nearly 3%. At the heart of the matter, however, lies a simple explanation: “Greece is well and truly bankrupt.” This is no mere crisis of market confidence or psychology. Greece will not be able to repay all of its debts on time.
Like the market, the Wall Street Journal is calling the €110 billion Greek rescue package “a flop.” Contagion has continued to spread with the euro sinking in value and European stock markets down nearly 3%. At the heart of the matter, however, lies a simple explanation: “Greece is well and truly bankrupt.” This is no mere crisis of market confidence or psychology. Greece will not be able to repay all of its debts on time.
Tags: Contagion, Europe, Greek crisis
