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| Clueless in Canada starring the opposition political parties |
It appears we are returning to more Global instability that will affect our economy, trade is hitting the Front pages again. The revised balance sheet in Greece and Ireland's refusal in participating in the EU bailout plan. The fear is other countries such as Portugal and Spain may require financial support if the markets lose confidence.
A simultaneous bail-out for both Ireland and Portugal might run to €200bn, depleting much of the EU rescue line. The European Financial Stability Facility (EFSF) can raise up to €440bn on the bond markets but only two thirds of this would be available. The IMF is expected to loan a further €3 for every €8 from the EU under the bail-out formula.The great concern is that the crisis could spread to Spain, which has a far bigger economy that Greece, Portugal, and Ireland combined. Foreign banks have €850bn of exposure to Spanish debt.David Schautz, credit strategist at Commerzbank, said the EU bail-out fund would come under "severe strain" if Spain needed a rescue. Yet this remains a serious risk since Spain must roll over or raise €175bn of debt next year.-The Telegraph
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| Deep cuts by some EU members spark protests. |
Will the Government in Britain, Germany, France that are passing austerity budgets be able to convince their citizens on the merit of another bailout by the European Union for the basket cases that are unwilling to accept the same level of cuts in spending?
In Canada our federal political parties on the Hill spent Monday debating the short title of a Government Bill they felt was inappropriate. Clearly the opposition MP's are out of touch with the economic realities of the global economy and the interests of its own citizens. The Coalition to nowhere remains clueless and needs to be held accountable at the earliest election.
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