It is hard to imagine how the situation in Greece could worsen. G7 financial ministers met by phone yesterday to encourage leaders in the region to build a support system for weak countries. Nothing appears to have come of it. In the meantime, the New York Times ran a piece that says that poor tax revenue levels in Greece may take the nation under financially, even if it meets its austerity target.
And political leaders in Spain said that the nation has lost its ability to borrow. The capital markets have rejected its paper as too risky. Without saying so directly, Spain has surrendered in its attempts to solve its financial problems without help from its neighbors and the International Monetary Fund.
Douglas A. McIntyre