Friday, June 15, 2012

Grexit: G20 to the rescue again

Open Europe reports on Twitter today that the President of the European Council has apparently called for a video conference of the G20 countries, to be held in approximately 3 hours time. The topic will undoubtedly be support for a new infusion of cash into the global economy ahead of Greek elections on Sunday, as suggested by Daily Forex. Support for austerity is low, but support for leaving the euro is also low, meaning that the Grexit, if it comes, will be messy.

The G20 talks point to an expectation that the Greek election will leave the rest of Europe with an enormous problem. The key players in those talks will have to be the main central banks, which have rescued the situation before. And they will have to again if the politicians in Greece and the rest of Europe can't agree.

And now we wait.

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