OEDIPUS REX

Look guys, it's not like somebody married their mother. The Greeks did what the Greeks do, they lied about their finances and you guys did would you guys do, winked and nodded at what the Greeks did all the while knowing that at some point everybody was going to get caught in this little charade and now is that point so let's get on with it and them then refinance already. Besides, you are making me look REALLY bad and wrong and I'm about to get REALLY pissed off. If that isn't bad enough now the Fro...er...French have started a cat fight of their own between He With the Hottest First Lady inTown (M. Le President), his #1 political rival who just happens to be the President of the IMF and the Head of the European Central Bank who used to be the Finance Minister of La Belle Republique. Under normal circumstances this would be a kick and a half but as I said, it's making me look bad.

I really thought this thing would be settled by now but with the adamant stand of Ms Merkel as to German support and her apparent requirement that the IMF get involved causing M. Sarkozy to damn near rupture himself and M. Trichet to lament over the fact that the EU should not need to involve the IMF (there's is no love for M. Strauss-Kahn here either) the mood is not sanguine. Fitch downgraded Portugal yesterday and continues to warn on Greece, the Euro continued to tank today (oh, those German exporters!) Ms. Merkel added to the fray in with language reminding one of the 1918 reparations (these guys just don't seem to forget) and the Spanish are getting very antsy as eyes are being turned towards them. Later in the day there was a talk about a joint effort, supplying funds at "the average of EU borrowing costs" which would involve the IMF. One is tempted to ask if that cost would be weighted in some way as to individual borrowers but that would probably be not constructive at this stage. We shall continue to wait and observe.

Meanwhile, on the other side of the world, the Chinese told the Congress to go suck on a rock as to the alignment of the Yuan. Predictable as we mentioned here yesterday. As relaxed as I was about the Greek drama...and perhaps as wrong as I could be...I remain very concerned as to how this situation could play itself out. I wouldn't mind being wrong here but with state of American politics in this, an important election year, the lack of understanding of Chinese politics and China in general on the part of the major players coupled with the important political issues internal to China as well as the ever-present issue of "face" when dealing in this part of the world, things could go REALLY south. I hope the administration has the ability to get hold of this quickly. Again, we shall wait and observe.

Sweet sixteen tonight. I hate Ky..