Wall Street Joins the Rush Higher – NYTimes.com


There are still many questions that remain unanswered about Monday’s measures, said Mr. Maguire of Société Générale, especially where the money will come from.European governments may have to issue more debt to finance the bailout for Greece and other troubled nations, should the need arise, he said, which in turn could reignite broad concerns about sovereign debt levels, which are at the heart of the current turmoil.Economists also cautioned that much of the money required national approval, which is still outstanding, while the savings measures required of Greece and other deeply indebted nations could jeopardize their economic recoveries and trigger social unrest in those nations.And even if the measures succeed, the euro could still be in for a rough ride.Derek Halpenny, a currency market analyst at Bank of Tokyo-Mitsubishi UFJ in London, wrote in a research note that one does not have to expect the currency zone to collapse to understand that the mix of tighter fiscal policy among member governments and continued low rates from the European Central Bank are likely to leave the euro “locked in its current downtrend.”

Wall Street Joins the Rush Higher – NYTimes.com

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