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Monday, October 24, 2011

European Leaders Debate Severe Options for Accord

“European leaders took their first steps toward a new plan to stem the euro crisis, admitting that their last grand plan, agreed to only three months ago, has failed. . . .

Still, a Greek government official said he expects talks about extending the repayment period of, and cutting the interest rate on, bailout loans from other euro members. That has been done several times already. . . .

European leaders appeared relatively close to agreement on a plan to make the euro zone’s €440 billion bailout fund effectively larger by employing leverage.”  (Wall Street Journal)

They need a larger bailout fund in case they need to bail out the other bailouts.

FEE Timely Classic

Greece: The Canary in the U.S. Coal Mine?” by Steven Horwitz