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Currency News – Stress On Eurozone Starting To Grow

Even though Angela Merkel has avoided the word “Default” when it comes to talking about the situation in Greece, it seems as though that may be the only real option to help them get out of their dire financial situation.

There are also reports that Greece is considering leaving the Eurozone, but Merkel also quashed these rumors and said there is no basis to them. There is fear that if Greece is forced to leave the Eurozone, others will begin to follow and there will be even more financial problems.

In the end, Merkel and Sarkozy have to get together and set the record straight. There has been confusion around this issue for quite a while, and some things need to be set straight. It is clear that they want to say as little as possible while they are working out a solution, but when there is no credible information available, rumors will begin to persist and have a negative impact on the markets. If they just get together, make a plan, and start implementing it, things might be a bit more stable.

But in the end, that is a whole lot to ask…

Italy In More Trouble Related To The Debt Crisis

While Silvio Berlusconi has stated that the austerity plan that has been making its way through parliament slowly will be passed this week, Italy seems to be digging itself a deeper and deeper hole.

As it turns out, even with these new plans and the small amount of progress being made, investors just don’t have the confidence in the Italian government – they don’t think they will be able to get out of this mess without things getting a lot worse.

Italy did sell some bonds on Tuesday, but they had to pay record high interest rates on them. There are even reports that Italy has asked the Chinese to buy some of their bonds to help them out, but this is also unconfirmed.

You have to give Italy credit for trying almost anything, though – there will be a meeting later this week where politicians will start discussing whether there are any state owned assets that can be sold off to help with their debt issues.

It will still be a while before this issue is taken care of, so we will have to keep watching it to see how the Euro reacts to it. Unless things start looking up soon, though, things could get a whole lot worse.

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