Thursday, June 23, 2011

Greece: Cabinet approves Austerity, European Banks pressured to accept losses

by Calculated Risk on 6/23/2011 12:06:00 AM

From the Telegraph: Greek cabinet approves austerity budget

The Greek cabinet has approved a 2012-2015 austerity budget plan as well as laws for its application, a key condition for further EU-IMF help to tame its massive public debt, government sources said.
The beatings will continue until morale improves.

And from the WSJ: Bailout Needs Banks' Help
In both Germany and France, finance-ministry officials met with representatives of their respective countries' leading banks and insurers on Wednesday to discuss how banks would shoulder some of the cost of a second bailout of Greece ... The trick will be for the private sector to take losses on Greek bonds, without Greece being declared in default.
I'm sure it will be voluntary ...

The Greek 2 year yield is down to 27.9%. The ten year yields is down to 16.8%.