German Fin Min Schaeuble Refutes Himself Again, Sees EU Greek Aid Decision In Two Weeks, "Surprised" By Rescue Request
The record volatility in the market on no liquidity, and the resulting 20 pts moves in the S&P every day must be getting to the heads of German ministers. The same guy whose comments killed the USD, spiked the EUR and thrust gold, the German Finance Minister is now saying that he expects a decision by the European Council on the Greek request for aid only “in the week after next week.” Obviously, this is a little different from what he was quoted saying earlier that Greek aid would be forthcoming instantaneously. And the kicker: "It will take some time before Greece will have met the preconditions for the aid, namely a credible consolidation plan also for the years 2011 and 2012. It is not to be expected that a decision will be taken in the next days" as well as the discovery that in a "telephone call with the Greek Finance Minister he had tried to convince him to still wait a couple of days," will likely soon result in years of psycho-therapy and nail gnawing for G-Pap and his henchmen. The headline risk (and we are getting conflicting headlines now literally every 10 minutes) is just ridiculous. As always, those trading this insanity are brave (and increasingly poorer) men and women. Have fun.
From Market News:
The minister said the German government had been surprised by today's decision to activate the aid mechanism. In a telephone call with the Greek Finance Minister he had tried to convince him to still wait a couple of days, Schaeuble explained.
The minister announced that he will meet with the leaders of the German parliamentary groups on Monday morning. Schaeuble repeated that German loans to Greece will come from the state-owned KfW bank. The loans will be then guaranteed by the German government.
Schaeuble said he aimed to seek approval for the guarantees in parliament and hoped to convince the opposition that it will agree to a fast-track law procedure.
Earlier on Friday, Germany's main opposition party, the center-left SPD, said it was willing to support the government in an eventual financial aid for Greece if it informs parliament quickly and gives it enough time to deliberate.