The Greeks are short of cash, plain and simple. But a variety of European leaders and finance officials refuse to see it that way. They want to imagine, like Max, that they can become “king of all wild things” and tame the savage debt crisis that’s prowling around in the euro zone… But we doubt the finance ministers will fare as well as Max. The Greek debt monster will not return to the closet without mauling a few bondholders along the way.
Financial markets around the globe rallied yesterday on the “good news” that the European Union and the IMF would continue bailing out Greece. Never mind that last year’s $157 billion bailout failed to make the insolvent Greeks solvent, the EU pooh-bahs are cobbling together a new $60 billion bailout which, as Joel Bowman pointed out yesterday, “does little more than to give false hope to a doomed scenario.”