Investors "want to make sure that the aid plan for Greece is no bluff," said Luca Cazulanni, deputy head of fixed-income strategy at UniCredit Bank in Milan. "It appears very unlikely that the curve will come down significantly before the package is activated."
On a few websites yesterday rumors of a backdoor bailout of Greece, it sounded like more jawboning to me. The market is now saying show me the money. Less then 16 hours later we have yet another plan.
France is going to lend to Greece, Greece will have to probably lend money to Portugal in a few months, Portugal will have to lend to Spain, Spain will then lend the money to Italy, Italy will do the final reach around and lend it back to France. Problem solved.