Euro Death Watch
George Soros wrote today in FT about Europe's looming crisis:
The most effective solution would be to issue jointly and severally guaranteed eurobonds to refinance, say, 75 per cent of the maturing debt as long as Greece meets its targets, leaving Athens to finance the rest of its needs as best it can. This would significantly reduce the cost of financing and it would be the equivalent of the International Monetary Fund disbursing conditional loans in tranches.
But this is politically impossible at present because Germany is adamantly opposed to serving as the deep pocket for its profligate partners.
Ultimately, this is the problem underlying the entire monetary union: An area forced together that has no interest and perhaps more importantly no history being as one.