Monday, May 16, 2011

U.S Suspends Investments "To Keep From Defaulting", As Another $110B Bailout Hits Europe

While the U.S is struggling to avoid defaulting by hitting the debt ceiling, the European Union finance ministers approved a new bailout, this time for Portugal, in the amount of  78 billion euros or $USD 110.8B, the third european country todo so.

In the U.S. the Treasury Department will suspend investments in federal retirement and disability funds as of Monday, "the latest steps meant to keep the U.S. government from defaulting". (Bloomberg)

Meanwhile, the Greek situation is similarly fragile, with "European finance ministers will tackle Greece’s financing needs at meetings in Brussels today".

The Europena bailout will be paid by the European Financial Stability Facility, the European Financial Stabilization Mechanism, and the headless International Monetary Fund, provided nobody else ends up in jail.
"Portugal follows Greece and Ireland in requesting a bailout from the EU and International Monetary Fund. Politicians are struggling to convince investors that 256 billion euros in aid to the three countries will be enough to stamp out Europe’s debt crisis and prevent the euro region’s first restructuring".

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