Forwarded Message

From the WSJ:

“Ms. Merkel signalled on Friday that she is having second thoughts about the wisdom of emphasizing bondholder losses. “We have a draft for the ESM, which must be changed in the light of developments” in financial markets since the Greek-restructuring decision in July, she said after meeting Austria’s chancellor in Berlin.

 

Austrian Finance Minister Maria Fekter, speaking at a conference in Hamburg on Friday, was more direct. “Trust in government treasuries was so thoroughly destroyed by involving private sector investors in the debt relief that you have to wonder why anyone still buys government bonds at all,” Ms. Fekter said.”