MORAL HAZARD KNOWS NO BOUNDS

AP--Germany's chancellor says she is opposed to EU countries bailing out fellow eurozone member Greece.

"We have a contract which rules out the possibility of bailing out other nations," Merkel told German broadcaster ARD in an interview Sunday night.

However, she did not explicitly rule out state-owned banks buying bonds issued by Greece, a rescue solution some media report is in the works.

WB7--And who bails the state banks madam chancellor?