Which goes a long way to explain that while our government is doing everything it can to overwhelm the dollar, the euro is actually losing ground to the greenback.(down 13 percent since December)
And then the Germans, who will have to foot a lot of the bill are a bit reluctant. At least some of them are. 'We're on a Slippery Slope': Will the Greek Bailout Destroy the Euro Zone? - SPIEGEL ONLINE - News - International
One of them, Werner Langen, head of the CDU/CSU group in the European Parliament, is "extremely skeptical about whether the aid package is compliant with EU law and the German constitutional law."Expect lawsuits to stop Germany from paying.
And giving Greece more money via loans won't solve the problem. They need to stop spending money they don't have, and aren't likely to be able to borrow now that their bond rating has tanked.
A major ratings agency cut Greece’s debt to junk level on Tuesday, warning that bondholders could face losses of up to 50 percent of their holdings in a restructuring. The agency also downgraded Portugal’s debt by two notches. Ref.Eventually, people begin to think they won't get their money back. Eventually they remember that countries do in fact go bankrupt, and default on loans.