New European Bailout Fund Needs to Be $4T - And No AAA Rating

"It’s just not conceivable to have a much larger EFSF and still have France as triple A,", said Daniel Gros, director of the Centre for European Policy Studies. The problem is that some people are now saying that the new bailout fund/ mechanism needs to be about $4T! article



It is inconceivable that such a monster could be approved, but the pressure is certainly there. beside,s the firast "shock and awe" did not exactly work very well.

"The sum of €440bn was intended to “shock and awe” financial markets when unveiled in May 2010 during the first Greek crisis. The EFSF has since evolved from a temporary set-up to help small peripheral countries into a multipurpose firefighter to assist large banks and bigger eurozone economies such as Italy and Spain. Most analysts believe it is too small for the tasks it will soon be called on to perform."

Guido Westerwelle, Germany's foregin minister, hit back at the U.S. and the pressures coming from the couintry. "Let us not forget that the cause of the current crisis is too much debt in Europe, but also too much debt worldwide". "Therefore, I cannot understand some of the critical comments from our American friends regarding our policy of reducing debt."