The International Monetary Fund is preparing to suspend aid payments to Greece by the end of next month unless eurozone leaders plug a €3bn-€4bn shortfall that has opened up in Greece’s €172bn rescue programme, according to officials involved in management of the bailout.The gap emerged after eurozone central banks refused to roll over Greek bonds they hold, and comes amid signs that even the scaled-back privatisation plan Athens agreed to last year is falling behind schedule....The shortfall will force eurozone finance ministers to discuss “alternate sources” of funding...But the timing is particularly awkward as Germany is holding parliamentary elections on September 22. In the run-up to polling day Chancellor Angela Merkel will be loath to submit any further aid request to the Bundestag where it would likely be highly controversial....the IMF has warned EU officials the gap will require it to stop aid payments at the end of July, said a person involved in the discussions.Under its rules, governments must have at least 12 months of financing in place to receive IMF disbursements under a bailout programme. This latest shortfall of €3bn-€4bn means that Greece’s financing needs are only covered up to the end of July 2014.
Wells Fargo & Co., the largest U.S. mortgage lender, is offering 30-year fixed-rate loans at 4.5 percent, according to its website, up from 4.13 percent on June 18 and 3.88 percent on May 22, when comments by Bernanke to lawmakers and the release of the minutes of the last Fed meeting caused bonds to plummet. Freddie Mac’s survey, which is lagging behind the bond slump because it reflects originator responses through yesterday, showed average rates falling to 3.93 percent this week.
On CNBC and all the channels that cover business, we have person after person after person, buy side, sell side, upside, downside:
- How is the economy? Economy is great.
- What about stocks? You got to buy them.
- What if they break? You have to buy the dips.
- What's wrong with the economy? I don't hear these people saying anything is wrong with the economy.So what's wrong, Ben? Why can't we get out of crisis management mode?There's always going to be something....Why don't these people kick the tires?They take a press release from the Federal Reserve and they think it was written by God.
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