Well over a month after predicting the second Greek "bailout" plan was just hot air, we are not only back to square minus one but heading backward. And while the market's attention is now focused on Italy, and soon Spain and Belgium, the weakest link still is Greece, whose bankruptcy, despite all the posturing may be coming sooner than most expect. It appears that Germany is once again in the renegade drivers' seat and has reverted to its core plan of taking its chances with a Greek default, breaking away from the ECB's position, and ultimately saying let the chips fall where they may. To wit, from Market News: "Lars Feld, a member of the German government's Council of Independent Economic Advisers, on Thursday criticized the European Central Bank for blocking a restructuring of Greek debt."
A lot of time has been lost up to now "in seriously taking on a Greek debt restructuring and communicating it effectively to market participants, especially because the ECB is opposing a restructuring," Feld told German business daily Handelsblatt in an interview published on its website.
"Thus, it is time now that the ECB together with the heads of state and governments makes this best-case scenario possible," the wise man insisted in the interview.
He argued that a restructuring of Greek debt was manageable if the Greek banks and, if necessary, also other banks in the EU were supported.
We can't wait for the barrage of BS to come in response from Barroso, Von Rmpouy and all the other klepocrats who now realize it is just a matter of time before their monetary dream becomes a nightmare.