Greek Government Finalizing Agreement on Bailout

[Javaman]

http://www.cnbc.com/id/46291061

Greece's government is preparing a document with a list of painful reforms needed to clinch a new financing package, a government official said on Tuesday, moving Athens one step closer to a deal needed to avoid a chaotic debt default.

Officials worked on the draft of a text on the 130-billion-euro bailout plan that will be put to political leaders for approval as strikers protesting against more austerity tussled with police outside parliament.

"The Greek government is working on the final document that will be discussed at the political leaders' meeting later in the day," the official told reporters.

Safe haven German government bond futures reversed gains on news of progress in the talks, while the euro [EUR=X 1.3243 0.0111 (+0.85%) ] also rose against the dollar.

more at link...

[dipsydoodle]

1. In associated news

Bernanke repeats vow to shield U.S. from Europe fallout. http://www.reuters.com/article/2012/02/07/us-usa-fed-testimony-idUSTRE8161DT20120207

I'd love to know how he intends to achieve that given that its Goldman Sachs and AIG sitting on about a trillion of CDS's all of which will become payable if Greece defaults.

[Johnson20]

2. Very good point dipsy...n/t

[KansDem]

3. That's the 800-lb gorilla

Wall Street was selling Greek bonds when European bankers wouldn't. European bankers knew Greece could not cover their debts, but Wall Street sold insurance to "sweeten the deal."

"We are in frequent contact with European authorities, and we will continue to monitor the situation closely and take every available step to protect the U.S. financial system and the economy," Bernanke said in remarks prepared for delivery to the Senate Budget Committee.

By saying "U.S. financial system and the economy" does Bernanke mean the "One Percenters?"

If Greece goes under, so does Wall Street. Get your wallets and billfolds out, America! TARP2 is coming!!!