2012, here we come.... (#4)

It was amusing to hear Angela Merkel calling this weekend for a 'barrier' to be erected around Greece. Anyone with any sense has to realise that the firewall will have to ultimately extend around the borders of France and Germany itself, at the very least.

But of course managing German expectations is going to be the key to the progress of this particular systemic failure. The Americans in particular have surely already figured out that it will be easier to get the Krouts to cough up if they think they are protecting themselves (via some sort of stop loss provision) than if they think they are bailing out the good-for-nothing Greeks, and transatlantic political discourse over the past week or so has adjusted itself appropriately.

Merkel and co still don't seem to be in any great hurry to sort out the EFSF (European Finances Seriously Fucked?) emergency fund, a permanent 'backstop' which is not due to take proper shape before the mid part of next year.