no free rides, no free money, page-3

this is interesting.

Its like Paulsons bazooka, said Nielson, Goldman Sachss chief European economist in London. Its a difficult balancing act -- saying something comforting to the market without committing money and hoping the market will take their word for it.

Default Threat

In 2008, Paulson won powers from Congress enabling a government rescue of Freddie Mac and Fannie Mae -- authority he likened to a weapon whose mere existence made it unlikely it would have to be fired.

After a three-month long plunge in Greeces bonds amid speculation it was facing the threat of default, the euro regions leaders yesterday ordered the country to slash its budget deficit and warned investors they would be willing to defend the country from speculative attack if necessary.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a3Vu4NG9BPSU&pos=2

It may well have worked in the USA,but it can't work in the EU.

Countries won't bail out of countries.

Especially such undisciplined countries like Greece.

At some point you have to face reality.

The money is gone.

Next week it will be Portugal,then Spain, then Italy then UK and so on.