A Greek Tragedy - Part 2

As expected, Greece's problems have resulted in uncertainty about its ability to raise finance to repay maturing debt and they will now avail of a EU / IMF rescue package - Euro 30 billion from the EU and Euro 15 billion from the IMF.  This should please those clever people who have been buying Greek and Portuguese debt at very nice prices indeed.

The situation is extremely difficult as Greece will inevitably require substantially more over the coming years.  After all, their national debt stands at Euro 300 billion with much of it maturing over the next year or so.

Germany will likely provide the bulk of the Euro 30 billion thereby causing Frau Merkel some political difficulties - the German people do not want to lend (maybe they will end up giving) their hard-earned money to the Greeks.  Whilst Merkel may ride this one out, what will happen if Portugal or another Euro country gets into the same difficulty?

What is wrong with the IMF handling the situation directly with support, if necessary, from the major Euro economies?  With Eurozone countries that have some difficulties, such as Ireland and Spain, providing up to Euro 500 million and Euro 2 billion respectively, I would prefer to see the IMF taking charge, expecially if we consider the possibility that other countries may end up in the same boat as Greece.

What do you think?