Mish's Global Economic Trend Analysis: IMF Seeks to Halt Aid to Greece; September Bankruptcy Awaits; Dominoes Will Fall
From Der Spiegel: Translated from German
The patience of the International Monetary Fund (IMF) with Greece comes to an end: According to to information obtained by SPIEGEL, senior IMF officials told EU leaders in Brussels that the IMF was no longer willing to provide additional funds for Greece.Dominoes Will Fall
The Troika estimates that Greece needs between ten and 50 billion € to meet targets, but many governments in the euro zone are no longer willing to shoulder new burdens. In addition, countries like the Netherlands and Finland, have linked their support because the IMF was involved.
The risk of withdrawal of Greece from the monetary union is now held in the countries of the Euro-zone control. To limit the risk of contagion to other countries, governments want to wait for the start of the new bailout ESM.
The judgment of the German Constitutional Court regarding the ESM on September 12th will come into play.