The magic money tree

IT IS hardly surprising that the markets are having second thoughts about last week's euro zone rescue deal.

Greece’s new bail-out helps, but should have gone further

WHEN Henry Paulson, America’s then treasury secretary, readied a plan to prop up Fannie Mae and Freddie Mac, two teetering housing agencies, in the summer of 2008, he spoke of having a “bazooka” in his pocket. In their response to the sovereign-debt crisis, Europe’s policymakers have tended to favour the peashooter. Their latest salvo in defence of Greece on July 21st produced some favourable initial reports, but the bang has faded. In a strange inversion of the crisis to date, the new bail-out plan seems to have helped the weaker peripherals and hurt the stronger ones.

Deposits may shield Aussie banks from Greek debt crisis fallout

The Greek debt crisis is increasing the cost of funding for Australia's Big Four banks, but credit market experts say rising deposit rates are counteracting the threat.

As the sovereign debt crisis in Europe continues to drag on with a 12 billion Euro tranche of Greek bailout money delayed until next month at the earliest, the heads of Australian banks have voiced concerns.