Greece Delays Bond Sale Amid New Turmoil

[TomClash]

Source: Wall Sreet Journal

By COSTAS PARIS

Greece delayed plans to issue a 10-year bond until next week, after the government announces a new austerity package that will reduce spending between €2 billion and €2.5 billion ($2.7 billion to $3.4 billion), people familiar with the situation said. The government hopes to raise €3 billion to €5 billion from the bond offering.

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The delayed offering, along with the S&P warning and widening bond spreads, rattled investors across Europe Thursday and reignited expectations that Athens will require more than rhetorical support from European Union leaders to solve its fiscal crisis.

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The Greek stock market slid nearly 3% Thursday, and the euro slipped 0.5% against the dollar. This year, the Athens market is down almost 15% and the euro is off 5.5%.More broadly, the Pan-European DJ Stoxx 600 dropped 1.6% to 243.23, and the Dow Jones Industrial Average, having pared earlier losses, ended 0.5% lower Thursday.

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The new austerity steps, expected by midweek, would come in addition to previously disclosed plans for spending cuts and tax increases aimed at producing €8 billion to €10 billion in savings and additional revenue.

So far, those measures include a freeze on civil-service wages; cutting public-sector entitlements by 10% on average; a fuel-tax increase; and closing dozens of tax loopholes for certain professions, including some civil servants.


Read more: http://online.wsj.com/article/SB10001424052748704479404575086892236735272.html?mod=WSJ-business-whatsNews

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Propaganda omitted.

[Demeter]

1. Thanks for that!

Eliminating propaganda is "green"!

[jaybeat]

2. Austerity for ordinary working Greeks

So the banksters and the bond holders can add a few more percentage points to their yields and balance sheets.

And the line is that "we all" will have to face the same kind of "austerity" or else the fat cats will just take their money and go home.

Softening us up for the ultimate globalization of the economic strata: the top 0.00001% making the rules for the rest of the world's population, which will become increasing "austericized" down to the same level.

:grr: