Germany tried to downplay the seriousness of the Greek debt crisis by coming to a late night compromise with France on Wednesday. Than today in Brussels they announced a new bailout of Greece by restructuring its massive debt. They are going to provide a loan of 1099 billion euros. They IMF and the private sector will be involved.
The markets seem to be euphoric — at first. But when they digest what has actually transpired, they will see that it is warmed over repetition of the same old stuff. Germany has been proposing a “restructuring” of the Greek debt for months. And they have been fighting off silly French proposals such as the most recent new tax on banks.
I bet you haven’t seen the last of the Greek debt crisis.