Guardian - Greek Live: Reports in its 7.16pm the following post on the ECB decision, " And the ECB has maintained the cap on emergency liquidity assistance (ELA) at €89bn, but crucially it has “adjusted” the haircuts it applies to the assets which Greek banks hand over in return for funds. In simple terms, that probably means the ECB is treating Greek government bonds as riskier, and valuing them as such when it calculates how much liquidity it can provide. "
Lets Get Real:
The European Central Bank, the lender of last resort can see Spain, Italy and others coming for money if they throw the rule book out to help Greece. The value of Greek assents has to been in the context of a corrupt political structure, they have gone back on agreements, they play games, and so what is the worth Greek collateral. This blog would rather take collateral from the Assad Government in Syria and the Baghdad Government, yes this blog does not trust the Greeks. The Greek crisis could become a cancer for the whole Euro, this would damage the UK economy, thus it would be better to cut off the damaged part, that is Greece and make sure that the rest of the Euro goes on. Tough outcomes are sometimes hard.