When we reported about the latest trial balloon floated by the European commission, namely that Greece may be granted a 6 month extension, we said very clearly, because we knew precisely what was coming, that this report "has to be validated by other members of the European Commission as well as Merkel and the other Germans (and may well be refuted, considering this is Europe)" and "this is after all Europe, which means Eurozone ministers always float trial balloons headlines ahead of major meetings like the one tomorrow, gauge the market reaction, then quickly retract them. Well, the market test has been conducted."
Case in point:
- SCHAEUBLE: REPORT COMMISSION TO GRANT GREECE 6 MONTHS `WRONG'
And here is Europe drawing a red line:
- SCHAEUBLE SAYS IF GREECE DOESN'T WANT A NEW PROGRAMME, THEN IT'S ALL OVER
- SCHAEUBLE: EURO REGION NEVER FORCED PROGRAM ONTO GREECE
No Europe, they are not laughing with you. Laughter aside, this of course, means that Greece now once again has full liberty to engage Russia and China as sources of funding right?
And the market reacts...