And as Africa is burning, Europe is getting ever more insolvent. But don't let the charts posted earlier showing both Portugal and Spain spreads back at all time highs fool you: Europe is on top of it again. The latest development is the formerly taboo topic of extending bailout loans to Greece and Ireland to 30 years from the current 3. Obviously, this merely confirms just how ugly the demand picture for European sovereign debt must be if the block is considering essentially extended bail out guarantees in perpetuity. From Reuters: "The idea surfaced in intensive talks among euro zone ministers, central bankers and officials on the sidelines of the World Economic Forum in Davos this week, the sources said." Well, that half a million in (taxpayer funded) participation fees for the G-Paps sure is paying off.
European Union officials are considering extending euro zone bailout loans to Greece and Ireland to 30 years in a bid to draw a line under the bloc's debt crisis, two euro zone sources said on Friday.
The sources said European Central Bank Governing Council member Axel Weber, head of Germany's influential Bundesbank, had suggested stretching out the maturities from three years for Greece and seven for Ireland as part of a comprehensive package to overcome the crisis.
The idea surfaced in intensive talks among euro zone ministers, central bankers and officials on the sidelines of the World Economic Forum in Davos this week, the sources said.
"There are all sorts of ideas. I don't know how much weight this one carries. But of course it's not unheard of. Britain and some other countries only paid off some World War One bonds just recently," a senior euro zone source said.