http://euobserver.com/19/113948 German Politicians Call for Changes to EU Treaties UBS Kills Latest European Bailout Proposal: "Why A 50% Haircut On Greek Debt Will Not Work"
http://www.spiegel.de/international/europe/0,1518,791914,00.html
http://www.zerohedge.com/news/ubs-kills-latest-european-bailout-proposal-why-50-haircut-greek-debt-will-not-work
Friday, 14 October 2011
Proposals to double the size of the IMF as part of a broader international response to Europe's debt crisis immediately ran into resistance from the United States and others, burying the idea for now and firmly putting the onus back on Europe.
The outlines of the plan, that had the backing of several developing economies, emerged as G20 finance ministers and central bankers began meeting in Paris to discuss a world economy under threat from European nations mired in debt.
One G20 source said some policymakers backed injecting some $350 billion into the International Monetary Fund. Other options under consideration included loans, special purpose vehicles and note purchase agreements.
Treasury Secretary Timothy Geithner wasted no time in shooting the idea down. The IMF's dominant shareholders, including the United States, Japan, Germany and China, are content that the fund's $380 billion worth of resources is enough. Canada and Australia also voiced opposition.
"They (the IMF) have very substantial resources that are uncommitted," Geithner said.
The United States is among countries keen to keep pressure on the Europeans to act more decisively to end the two-year-old debt crisis that began in Greece but has since spread to Ireland and Portugal and is lapping at Spain and Italy.
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