Wall Street Journal
June 20, 2011
It took the biggest one-day point drop in Dow Jones Industrial Average history to change Congress's mind about voting down the $700 billion TARP bailout program in 2008. What will it take to get Europe to truly address the Greek problem? With the latest talks inconclusive, markets may be poised to ratchet up the pressure even further in the summer months.
Relief after Angela Merkel's decision to backtrack on Germany's push for private-sector participation in any new Greek deal was short-lived. Friday, European markets welcomed the German chancellor's move. Monday, that evaporated after euro-zone finance ministers pushed off any firm decisions until July both on near-term funding for Greece—which needs a €12 billion ($17 billion) loan installment to be paid out in early July to avoid default on €6.5 billion of interest and principal payments—and a longer-term package. That markets were so swift to take a negative view is in itself a sign of deepening concern.
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