01 December 2010

EUROZONE: Anxious EU Considers Alternatives To Halt Debt Contagion.

NYTIMES/ LANDON THOMAS/
    Fears about Europe's financial crisis have spread from the weaker countries to healthier ones, including Italy and Belgium, and even mighty Germany.
    “We have created more doubts than existed before,” said economist Paul De Grauwe.“The interest rate now being charged for Ireland is a vote of no confidence for the package and it has obviously been inspired by a notion that we should punish our sinners. If we don’t succeed in containing this thing it could lead to a disaster in terms of the euro’s survival.”
                                                          Now new ideas about how to calm the bond vigilantes are being floated.