EFSF rules are out : nobody can get money

Now that is funny.

Details Of EFSF Emerge, However It Is "Too Little, Too Late"

* EFSF to be able to grant two types of precautionary credit lines, normal and enhanced, based on IMF instruments.
* Typical size of both types of EFSF precautionary credit lines for Euro-zone sovereigns could be between 2 and 10 % of GDP according to a document
* Both types of EFSF precautionary credit lines would be for 1 year, renewable for 6 months twice
* IMF involvement in design and implementation of EFSF precautionary credit lines will be sought in all cases according to guidelines

The key point :

* To be eligible for EFSF precautionary credit lines Euro-zone sovereign must respect EU budget rules, have sustainable debt, external position, no bank solvency problem and seek to reduce macroeconomic imbalances according to a document

If this is enforced, as ZH says, nobody is eligible for any money.

Oh but I know what could solve everything... give all the power to a central European government so countries are eligible to be saved! Ain't that a brilliant plan?

Of course, laws and rules are just for the little people, not for those who do God's work.


Update :

* GERMAN GOVERNMENT DOESN'T EXCLUDE POSTPONING SUMMIT, WELT SAYS
* WELT CITES PEOPLE CLOSE TO THE GERMAN COALITION, GOVERNMENT

The euro is plunging of course.

Update 2 :

* Senior EU sources say unaware of any plan to postpone Sunday's EU leaders' summit
* Austria finance minister says dates of weekend EU summit fixed, unaware of any postponement

The euro was hurting too much...

This kind of convoluted economic micromanagement is the reason the Eurozone will cease to exist within the next few years.

It was a bad idea to begin with...But it has since been compounded by even worse ideas to mitigate the problems created by bad ideas.....