Just in case you thought the IMF would not be implicated in the Greek bail out, here comes George Papandreou to pump stocks up a little more. The Greek PM, not satisfied with the very intangible and non-commital support he has so far gotten from all his European peers who at least so far are not in charge of a soon to be defaulting nations, and wish to avoid revolts from their own taxpayers, has confirmed that he has been in close contact with the IMF's Dominique Strauss-Kahn. Now did anybody seriously think the Fed would avoid such a golden chance to not destroy the dollar just a little bit? In the race to current bottom and sovereign default, every little bit counts.
Market News reports the deragned ramblings of yet another self-deluded individual:
Today's EU summit declaration about Greece makes clear to financial markets that European leaders will not accept instability in the eurozone, Greece's Prime Minister George Papandreou said.
Briefing reporters after the summit here, the Greek leader dodged a question about whether the International Monetary Fund might be involved in any aid for his country. But he later left the door open.
"I have been in close contact with IMF Managing Director Dominique Strauss-Kahn," Papandreou said. "We need the technical support of the IMF. The IMF has the expertise to face similar crises which have occurred outside the European Union over the past years - expertise which the European Union does not have."
He noted that the IMF has provided technical assistance to Greece since December, following an invitation by the Greek government.
Papandreou said he interpreted today's summit outcome as "a clear message that there would be coordinated action if needed" and a "clear message to the markets that [EU leaders] support the Greek economy."
He reiterated his government's pledge to tackle its fiscal problems in earnest. "Our target to cut the deficit this year by four percentage points is clear. The Greek government has decided significant changes and reforms for our country," he said.
And just in case it was unclear that there is a major case of psychosis and schizophrenia involved, read the conclusion and weep.
He conceded that, "the lack of credibility of Greece resulted in a lack of credibility of the eurozone." However, "today's communique by European leaders is a clear message to [markets] that the eurozone will not accept any destabilization."
Actually no George, it is a clear indication that just like Paulson said in July 2008, Europe is preparing to take out the "bazooka" and deal with the elephant in the room. However, just as in 2008, the EU will very soon learn, and demonstrate to the market, that not only is there no bazooka, but when you don't have the facility of access to the reserve currency printer, you are, well, fornicated.