Euro Falls Against Dollar, Greek Bonds Drop on Budget Concern

The euro has depreciated against the dollar in light of the deficit that the Greek government is facing. There are two scenarios that the European Union (EU) is faced with. If they bail out Greece, they would send out a bad signal to other EU members. If they do not, they risk attacks against weaker EU members. Yield premiums for bonds issued by weaker EU members have bee increasing. This is a cause of worry for the ECB.