Just when you think the US Congress is the most inept political organization on the planet – the EU Finance Ministers take things to a whole new level of crazy by calling an emergency meeting and then failing to accomplish the goal of that emergency meeting and, even worse, indicating that they are unable to resolve their differences and kicking the problem over to the June 23rd "Leaders" summit. How can they be so stupid – don’t they know how much damage can be done in two weeks?
Actually, this is EXACTLY what the US Congress did when the Republicans voted down the bailout bill on September 26th, 2008 (remember how McCain flew in to be the "special negotiator") and the Dow had gone back up to 11,150 (see "Deal or No Deal Friday") on hopes the bill would pass but it dragged on into the weekend and they voted the bill down on Monday (see "Monday Mourning – Too Little, Too Late" and later that evening I pointed out that the failure to vote in a $700Bn bailout cost us over $1Tn in market cap that day) and we immediately fell 800 points that day and, just two weeks later, we were down 3,000 points thanks to the Republicans in Congress putting their own petty interests ahead of Americas. Thank goodness we learned our lesson and voted those guys out, right?
“We have to proceed very cautiously,” Luxembourg Finance Minister Luc Frieden told reporters after an emergency meeting in Brussels today, adding that “very clearly we have to go into that direction” of a delay to next month on a new aid package from the European Union and the International Monetary Fund. “Several options — from the IMF, as well as from the European Central Bank and from the European Commission — still have to be studied.”
Pressure on euro-area governments to craft a rescue plan before their end-of-June goal intensified yesterday after Standard & Poor’s slapped Greece with the world’s lowest credit rating. The focus on averting the euro area’s first sovereign default now shifts to German Chancellor Angela Merkel and French President Nicolas Sarkozy to resolve their differences at a June 17 meeting in Berlin. ECB policy makers have warned against German proposals that maturities on Greek debt be extended for seven years, an outcome rating…
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