Euro madness, with leverage

If, as Albert Einstein observed, insanity is “doing the same thing over and over again and expecting different results”, then the latest proposal for resolving the eurozone debt crisis requires psychiatric rather than financial assessment. The sketchy plan entails Greece restructuring its debt with write-downs at around 50% and recapitalisation of the affected banks. The European Financial Stability Funds (EFSF) would increase its size to a proposed ¤2-3 trillion from its current ¤440 billion. 

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