Eurozone Leaders Agree a Few Rescue Details, Like 50% Haircut on Greek Bonds; Plan to Develop a Plan Gooses Markets - Yves Smith

http://www.nakedcapitalism.com/2011/10/eurozone-leaders-agree-a-few-rescue-details-like-50-haircut-on-greek-bonds-plan-to-develop-a-plan-gooses-markets.html

I doubt that anyone with an operating brain cell thinks the Eurozone leaders were willing to break the banks. And the overall scheme, in particular the €1 trillion+ rescue facility, as we have discussed in prior posts, is unworkable unless real money comes in. That either means the ECB, which the Germans are dead set against, the IMF, which will contribute but not on a scale to be sufficient, or China. Bloomberg said that Sarkozy was going to call Chineser president Hu Jintao to hit him up for funding tomorrow.
Even though this plan, such as it is, has lots of gaps, including an insufficiently large rescue facility (Sarkozy’s brother Olivier, head of the financial services group at Carlyle, in an FT op ed earlier this week, estimated the total required for banks alone to be $2 trillion, or €1.4 trillion, and that’s before you add in sovereign rescue requirements).