As the bond vigilantes attack Greece's economy, and set their sights on other debt-plagued nations, European Union officials are preparing an emergency stabilization package to resolve the sovereign debt crisis. But unless the world's central banks get involved too, the EU moves won't be enough.
The fund probably doesn't have the resources to bail out Greece, Portugal, Ireland and Spain. Which begs the question: Who rescues the IMF if it needs more stabilization funds to put out another fire? You guessed it. The U.S. is at the top of that list.
Ratings downgrades for Spain, Portugal and Greece have alarmed already-rattled credit markets, sending borrowing costs sky-high. As contagion spreads, Europe's politicians need to stop dithering over the bailout and take dramatic steps to reassure markets.
