gold price, page-9

The ECB cannot accept bonds from a country in selective default so the move is for the ECB, including the Greek central bank I think which is also part of the euro system, to be able to offload the Greek bonds in their books through a buy back by the Greeks with money from the EFSF.

They seem to be attempting to organize an orderly partial default, but by now there is such a huge credibility gap on the whole issue that Mr market probably will no be yet convinced that an orderly default is in march. Anyway, let's keep our fingers crossed.

Question 1. If the EFSF manages to borrow 1 T but only ends up by lend to the Eurozone govs 500 billion where would they invest the rest?

Question 2. If the EFSF borrows at 4% and lends at 5% why do the Germans think that they are doing a favor to the Portuguese, Irish, Spaniards and Italians?