The rescue fund for the euro is already at 750 billion euros but the European finance ministers are facing pressure to increase the fund.
The fund will become permanent in 2013. Finance ministers suggest that waiting until then to increase the fund would not be smart.
They suggested that the European Central Bank should increase its bond buying program.
It should be clear to those in control of this rescue fund that in dire situations, an enormous amount of bailout money is necessary. I mean the bailouts for the U.S by The Fed was over 3 trillion if I'm not incorrect.
ReplyDeleteYa, however its easier to get people on the train to help salvage their own economy. In Europe, larger economies are being asked to contribute money to help bail out those that are struggling. This is the potential snag, the EU has to hope they can get Germany and the large economies completely on board with this fund increase.
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