Yes, No, Maybe, So, Oh, Yes, No, Ugh, Yeah, Nah.......

There are quotes all over net right now, waaaaaay too many to post, from one government official of a member EU country to, wait for it...... two hours later, another government official from another EU member country to, wait for it...., yet another EU government official all contradicting themselves on what can and cannot legally be done and who's willing to do what in regards to Greece.

As an outside observer, it looks kindergartners trying to agree on pizza toppings.

When I was an undergrad econ student I had to write a position paper on a macro economic topic.  I choose the Euro, which was close to becoming a reality, and argued that it would ultimately fail.  The paper was written about 10 years ago (the Euro came into circulation about 2 years later on Jan 1, 2002).  It seems like such a long time ago, but it is fact very short on the time line organized European history.  Modern day European countries have traditional and organizational roots going back to at least the fall of Rome in the 5th century.  So, the Euro hasn't even participated in 1% of European history. 

The basis of my argument was the countries are fundamentally and in many cases fiercely independent, mistrust each other, have centuries of warring and cheating and lying with each other.  They grow up in households where grandpa bad mouths the French, the English, the Germans, the Greeks, etc.  It's ingrained in them much the same way we have ingrained biases here in the US.  Deep inside most Europeans is a secret desire to see another country fail.

What's going on with Greece, and what's to follow after Greece with other weak EU member countries will be bringing to the table is a huge test that may ultimately prove my paper right. 


------- UPDATE TO ABOVE POST --------
Here's a link to what I've seen as the highest ranked EU government official quoted (or in this cause, it's what she didn't say) yet:
http://market-ticker.org/archives/1961-Angela-Merkel-Clanks-When-She-Walks.html

If Germany really refuses to sign on, then it makes me wonder if other entities like the IMF and the US will have to step in.  Or maybe Germany only signs on with back door funding from these outside players.

Sovereign Debt Off-Balance Sheet Financing

Came across a Felix Salmon post at Reuters detailing just one financing deal between Greece and GS.  Basically, Greece is further in debt then their balance sheet indicates.  Apparently this is old hat for countries (examples are given in the post).  And this is just one deal.  In one country.  Who knows how much is really out there.
http://blogs.reuters.com/felix-salmon/2010/02/09/how-greece-hid-its-borrowing-in-the-swaps-market/

And this is how contagion works....
http://online.wsj.com/article/BT-CO-20100209-718854.html

Now TARP can really go to waste....

Now that Wall Street banks are repaying bailout money, taxpayers should be even more concerned. The money is being returned to Congress.

The More Things Change... The More Obama Calls Them "Fat Cats"...

“The banks also received their share of Hoover’s ire for their unwillingness to expand in those troubled times. The New York Times reported on May 20 that Hoover was ‘disturbed at the apparent lack of cooperation of the commercial banks of the country in the credit expansion drive.’ In short the ‘banks have not passed the benefits of these relief measures on to their customers.’ The anger of the inflationist authorities at the caution of the banks was typified by the arrogant statement of RFC chairman, Atlee Pomerene: ‘Now… and I measure my words, the bank that is 75 percent liquid or more and refuses to make loans when proper security is offered, under present circumstances, is a parasite on the community.’" –Murray Rothbard, America’s Great Depression, Ch. 11

Hat tip to my good friend Rob VH.