Tuesday, May 04, 2010

Martin Wolf: A bail-out for Greece is just the beginning

by Bill McBride on 5/04/2010 07:47:00 PM

Martin Wolf writes in the Financial Times: A bail-out for Greece is just the beginning

Wolf reviews the bailout of Greece, and points out that Greece will probably be in prolonged slump. He wonders if the Greeks will "bear that burden year after weary year?"

And on the other members of the eurozone:

[T]he programme prevents an immediate shock to fragile financial systems: it is overtly a rescue of Greece, but covertly a bail-out of banks. But it is far from clear that it will help other members now in the firing line. ... Other eurozone members might well end up on their own. None is in as bad a condition as Greece ... But several have unsustainable fiscal deficits and rapidly rising debt ratios.
excerpts with permission
Wolf is not optimistic and has "huge doubts".