Yorgos Papandreou, the New European Lehman Brothers:

Too big to fall, -somebody will help us-, -public funds are needed-, these are many of the excuses and last resort weapons that Lehman Brothers, Bearn Stearns, and the rest of the financial industry thought about and took into consideration when denying to declare their bankruptcy or going directly to the edge, they already knew that they would receive bailout since the system relied on their own financial institutions.

They were right, the evidences were shown in the mid 2008 credit crunch. Now the tame has passed and a similar blackmail is on the table, the public debts, bonds and obligations, it doesn’t matter the maturity of them, one five or ten years, the single difference is that the menace is not the financial behaviour of a small group of bankers traders or a handful of greedy bankers, now comes directly from a Government.


Once again we are facing the tricky and mafia-style situation, who is actually the borrower and the debtor? When a borrowing entity relays in a single debtor with a huge amount of money the situation could (or will) derive in an out of control situation, confidence is the single collateral in that case, and the default of the debtor a total disaster.

Going back to the credit crunch situation, the Wall Street bankers knew that they were managing the situation and that at the end of the day, the Government (FED and Treasury), should have to interfere in their own affairs since otherwise the whole financial system would had collapsed and the wrong defined as “real economy” would be dragged down with them. Now Mr Papandreou’s Government is playing their own strengths and advantages in the same way, he and the Greece Government got financing from French and German banks (regardless other financial institutions overseas that have already suffered the impact of this dishonest politician behaviour), and now, who is actually in a risky situation?, for sure Greece has taken the lead, and European Union’s politicians have lost the initiative since they currently have a deep hole in their financial system.

At the end of the day, every single European Union citizen is going to pay for the Greece debt (note that 50% of them have been already deducted), and maybe the “euro never ending tap and bailout agreements” might be closed after this blackmail in order to prevent the rest of PIGS to use the strongly damaged confidence path and environment of the European Union Rescue Fund uniquely for domestic sort term political aims whatever the impact might be.

Thus, it is the lack of regulation and laisser faire scheme the real cause of the crisis or in the other way around the politicians interference and policy making currently are actual basis and seed for the present situation?, note that the sub-prime mortgages problem arose from Freddy MAC and Fannie Mae lending policy (see URL below) that were GSE (Government Sponsored Enterprises) the latter founded in 1970 and the former in 1938 as part of the New Deal even though Fannie Mae was reformed in order to promote indebtedness of house owners, overall it is to be remarked that was a transitional period from a Democrat to Republican administrations, no unique political blaming then.

(1) http://en.wikipedia.org/wiki/Fannie_Mae
(2) http://en.wikipedia.org/wiki/Freddie_Mac