Thursday, February 11, 2010

Is Greece Really The Bear Stearns Of Europe?

First we had Bear Stearn's which was in trouble like Greece for at least a year before the company blew up. Instead of letting them fail, a quick shotgun marriage was done with JP Morgan over the weekend so that markets can calm down once again. Well this morning we have a potential Bailout Plan for Greece.

http://news.yahoo.com/s/time/20100211/wl_time/08599196341000

Sound familiar?

They are bailing out Greece because of the potential ramifications of a "Greek Tragedy" spreading throughout Europe.

Again sound familiar?

Does this sound familiar?

"We are worried that a Greek Default will spread to other Euro Zone countries."

Just like if Bear went into the toilet, what other interconnected investment banks can soon follow?

It seems to me that Greece is also being deemed "Too Big To Fail" at the moment. I am just trying to figure out who is Lehman Brothers in this tragedy? Spain? Italy? Ireland? Will those countries we allowed to fail now? The much bigger question is who is AIG in this affair? To bad Goldman Sachs is not a major counter party to Spanish, Italian, and or Irish sovereign debt. Or are they?

This is not the end of the European Crisis my friends. Like Bear Stearns, its only the beginning.

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