Soros warns of Greek death spiral

The man that "broke the Bank of England" George Soros,  has said that Greece still faces the danger of a “death spiral” because the cost of borrowing in the euro region’s rescue package is too expensive.

At a meeting yesterday he said "If you start charging very high rates as the market does in anticipation of solvency then that pushes you into insolvency. If they don’t they have then to tighten even further, then your tax receipts go down and the economy goes further into tanking and then you go into a death spiral. That is the danger that is still remaining. The consequences of Greece leaving the euro would be the disintegration of the euro,” Soros said. “The disintegration of the euro would take a very long way toward the disintegration of the European Union.

On April 11 the Euro zone countries agreed a 30 billion-euro ($41 billion) aid package to Greece which gave it loans at 5 percent.