The Independent, London
Posted on 08/24/2012 9:39:45 PM PDT by bruinbirdman
Angela Merkel pledged to keep Greece in the eurozone - but her comments failed to convince traders who bet on yet more dangerous procrastination in Berlin and Brussels.
After talks with prime minister Antonis Samaras in Berlin, the German Chancellor said she was “deeply convinced” that the new Greek government was “doing everything to solve the problems.” Mr Samaras insisted that Greece “wants time not money.” But Ms Merkel refused to even address Greece’s plea, signalling a continuation of the deadlock at the heart of the debt crisis.
The sense of vacuum rather than solution was compounded by revelations that the European Central Bank (ECB) is planning to delay the progress of its bond buying programme. Sources at the central bank told reporters that there would be no decisions on the high-anticipated strategy, which has helped fuel the recent stockmarket rally, until Germany had approved the plan to boost the European Stability Mechanism (ESM).
Investors and economists had hoped ECB president Mario Draghi would use a press conference on September 6 to announce a radical intervention plan. But the German court ruling on the legitimacy of the ESM is not due until September 12. Mr Draghi first hinted at a bond purchasing scheme on August 2, yet the timetable is now sliding towards the next deadline for a Greek default.
Robert Halver, at Baader Bank in Frankfurt, told reporters: “We need clear decisions. There is a possibility that Greece will leave the euro zone in
October. Preparations for a Greece exit, and a subsequent domino effect are running. Markets need to know what the face of the new euro zone and policy will be.”
Earlier the Chinese stockmarket slumped to a three-year low amid diminishing expectations of central bank action, despite the deteriorating economy. Stockmarkets in Europe recovered from
(Excerpt) Read more at telegraph.co.uk ...
Eurocrisis ping.
That's easy: Plan on Greek exit on or shortly after November 7. It's my understanding that some high official, winner of a Nobel peace prize no less for doing nothing, has put in the request and Merkel agrees with it, for a short postponement...
Time is money. Where did this fool go to school?
Remember that Merkel has long resisted US gov. pressure to spend on "stimulus packages." Don't think Zero has much hold on her.
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