My recent prediction that Germany would be the big loser from the Greek debt crisis might have been premature. Although in all fairness, with this story pinballing back and forth every 10 minutes or so, any prediction is simultaneously premature and outdated the moment it is uttered. Be that as it may, although German Chancellor Angela Merkel is certainly emerging as the “bad guy” in this game of Greek poker, she’s not necessarily losing. In fact, her approach seems to be to nod her head, Yes, to each new proposal, while uttering the word, No. Guarantee EU support for Greece? That’s a great idea, let’s call in the IMF!! Bilateral loan guarantees, organized by the EU? That’s a great idea, let’s call in the IMF!! Create a European Monetary Fund and strengthen EU economic government? That’s a great idea, let’s call in the IMF!! Call in the IMF? That’s a great idea, why didn’t I think of it?
Meanwhile, the euro took another hit and Portugal took its place in line as the next sitting duck.