Wednesday, 22 August 2012

EURUSD......Greece needs air to breathe

Greek Prime Minister Antonis Samaras started a European charm offensive on Wednesday with an appeal to Germans for more time to meet Athens’ borrowing obligations, but he may struggle to make his case in a series of meetings this week with EU leaders.
“All we want is a bit of ‘air to breathe’ to get the economy running and to increase state income. More time does not automatically mean more money,” Mr. Samaras said in an interview with Germany’s mass-market Bild newspaper, which has often taken a ferociously skeptical line on bailing out Greece.

I have a feeling that Greece wants to spend more Northern European money and when it finally stops being bailed out will blame the Germans, default on its debt obligations and finally leave the euro...Meanwhile we are looking at 1.25 or a glorious failure. 
I gave up expecting financial meltdown last year as it slowly dawned on me that this is a wholly political solution to a financial crisis and It would not surprise me if this rumbles on for another 5 years or even 10 before a fudged solution is accepted/ratified by member states. The markets will continue to moan and wail.

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