EU bailouts sent yields up instead of down

                                      

Largely because the EU's bailout of member states with overwhelming debt dealt with the problem as a matter of liquidity, rather than solvency, the cost of borrowing for Greece, Ireland and Portugal went up instead of down, according to The Economist. The EU thought it only needed to buy time, but that's not how it turned out. "If Europe is headed towards a choice between default and fiscal union, we have already seen in Germany and Finland that electorates in creditor nations may not be willing to grant the kind of subsidies that debtors might require," the magazine noted. Full story here