Greece, Europe loves you, but you’re bringing it down. European officials are trying to avoid falling deeper into a debt crisis on the heels of Greece’s catastrophic financial situation. The IMF reportedly has said that a euro-zone rescue plan is now in the works, involving a 50 percent write-down of Greece’s debt. The European Union bailout fund is also expected to increase from €440 billion to €2.7 trillion. Over the weekend, the U.S., China, and IMF warned euro-zone officials of a global market meltdown. The groups argue that Europe must increase its rescue fund, and, in his harshest comments yet, Treasury chief Timothy Geithner said the threat of cascading defaults is catastrophic and must be eliminated immediately. The IMF has also said that the European Central Bank is the only thing that can “scare” markets that have hurt Europe. If the crisis moves on to Italy and Spain, officials believe a €2 trillion bailout will be necessary. As if the situation weren’t bad enough, the IMF also warned that if the debt crisis spreads, it may not have enough money to assist.
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