Wednesday, May 18, 2011

IMF Warns Greece, As If Country Were Not in Big Enough Recession Already; Restructuring of Debt Finally Acknowledged

Europe finally wakes up and aknowledges that Greece may need restructuring. Remember how Greece, Ireland and Portugal all stated that they would not need a bailout?

The headless IMF warned Greece that it must "redouble reform efforts to avoid derailing its fiscal program". As if the country were not in a big recession already.

Reuters says it was the "sternest IMF warning since a 110 billion euro EU/IMF bailout a year ago pulled the troubled euro zone member back from the brink of bankruptcy was delivered as European officials raised the possibility of a Greek debt restructuring".

The IMF says that their view is that the government program is not working,"
"The program will not remain on track without a determined reinvigoration of structural reforms in the coming months. Unless we see this invigoration, I think the program will run off track,".

"Europe's top financial officials broke a taboo on Tuesday and acknowledged for the first time that Greece may have to restructure its debts."

The Euro trades as FXE, most popular Euro ETF.

Whenever the Euro rises to much, we see these upsetting news coming out of Europe. Trouble is, it's a ping pong game between the U.S and Europe, who all want their currencies to weaken.

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