Friday, April 9, 2010

Greek Banks Seek More Aid As Savers Withdraw Deposits, Heavily Discounted Bonds Sold Off, Economy Staggers

Nerves over the solvency of the country’s banks and the ability of the under-fire euro state to raise much-needed funds are hitting new heights today.

Greek bonds are selling off fast, and the cost of insuring those bonds against default has hit new records. Sadly for those Greek banks and would-be state borrowers, that makes it even tougher to get new funding. And that, in turn, pushes down Greek bonds.