17 May 2010

EUROZONE: Markets Still In Limbo Over Fear Of Contagion.

NYTIMES/ Overview and Analysis/            Fear in the financial markets is rising again after a brief respite because of a belief that intertwined EU banks could cripple economic growth. Big banks in France and Germany hold billions in bonds from shaky neighbors like Spain, Portugal and Greece. A sure sign of insecurity, the LIBOR, is rising. “This bailout wasn’t done to help the Greeks; it was done to help the French and German banks,” claims conservative economic historian Niall Ferguson. “They’ve poured some water on the fire, but the fire has not gone out.”