by Calculated Risk on 7/08/2011 10:28:00 PM

From the WSJ: Greek Bailout Talks Shift to Attack on Debt

Discussions between bankers and government officials about Greece have undergone a fundamental shift in recent days, turning toward reducing the country's mountainous debt burden instead of just staving off a near-term financial crisis ... Finance ministers from the 17 nations that use the euro are expected to discuss the proposals at a meeting Monday in Brussels. They are expected to debate options that they previously discarded, including the use of European bailout funds to finance purchases of Greek debt.

The key is to reduce the debt. This is similar to the problem mortgage lenders face in reducing mortgage principal - it might make sense for one borrower, but then many other borrowers will want a principal reduction.

If Greece gets a debt reduction, Portugal, Ireland, Spain and Italy will all get in line. Every one likes free money.

Some more from the Financial Times: EU leaders differ over Greek default

Here are the earlier employment posts:
• June Employment Report: 18,000 Jobs, 9.2% Unemployment Rate
• Employment Summary, Part Time Workers, and Unemployed over 26 Weeks
• Return of the Teen! and Unemployment by Duration and Education
• Employment graph gallery