If you are following along at home...
UAE stands behind Dubai
EU stands behind Greece (as they will behind Portugal and Spain)
Japan stands behind itself
The IMF will stand behind the UK
Federal Government stands behind US banks, Fannie, Freddie, AIG
Federal Reserve stands behind Federal Government
The Earth stands behind the Federal Reserve
Mars stands behind the Earth
The Solar System stands behind Mars
The Universe stands behind the Solar System (let us pray it never gets past this stage)
However if you are not too big to fail, and just a normal peon.... you are free to fail. But please send in your tax returns first.
Conclusion? Buy stocks.
- The eurozone has agreed a multibillion-euro bailout for Greece as part of a package to shore up the single currency after weeks of crisis, the Guardian has learnt. Senior sources in Brussels said that Berlin had bowed to the bailout agreement despite huge resistance in Germany and that the finance ministers of the "eurozone" – the 16 member states including Greece who use the euro – are to finalise the rescue package on Monday. The single currency's rulebook will also be rewritten to enforce greater fiscal discipline among members.
- The member states have agreed on "co-ordinated bilateral contributions" in the form of loans or loan guarantees to Greece if Athens finds itself unable to refinance its soaring debt and requests help from the EU, a senior European commission official said.
- Other sources said the aid could rise to €25bn (£22.6bn), although it is estimated in European capitals that Greece could need up to €55bn by the end of the year.
- Germany, the EU's traditional paymaster, but the most reluctant to come to the rescue of a fiscal delinquent in the current crisis, has played the pivotal role in organising the rescue package, the sources added.
- "It will be a co-ordinated approach of bilateral contributions [between EU governments] … A bilateral contribution can be a loan or a loan guarantee. The guarantees will facilitate the kind of funds potentially needed in this context."
- "The Greek case is a potential turning point for the eurozone," said Rehn in the interview. "If Greece fails and we fail, this will do serious and maybe permanent damage to the credibility of the European Union. The euro is not only a monetary arrangement, but a core political project of the European Union … In that sense, we are at a crossroads."
55 billion Euro? That's a fifth of just a single oligarch (Citi? Bank of America?) bailout in the US. Peanuts. Uncle Ben could print that in one evening. With his eyes closed.
Bring on the Spanish!