The ECB will continue to buy the bonds of financially troubled EU nations, but it won’t say for how long. This forces capital markets investors to see the rescue of the region’s weakest nations as tentative and uncertain.Therefore, interest rates in the sovereign nations will remain high because risk cannot be calculated with even modest certainty.
The cost to insure the debt in Greece, Spain, Portugal, and Spain will rise on Monday. The rates they must pay for money to go to their Treasuries will also rise. There are too many plans to save the EU from its financial crisis, and too few details about how any of them might work.
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