Markets Terrified by Greek Attempts to Reassure the Markets About Bailout Plan

The Greek finance ministry has spent the day screaming about its commitment to fully implementing the bailout agreement. The German government was so reassured by this it announced plans to dig a bomb shelter. Really.

If that's not worrisome enough, how about this: Greek 1-year bonds are trading at 98 percent and 2-years are at 55. I'd still keep my money in lottery tickets.

So first Greek Finance Minister Evangelos Venizelos sent out an email:

This isn't the first time that this organized wave of rumors over Greece's default has appeared. This is a game that's in bad taste, organized speculation that is directed against the euro region and the euro as a whole.

The Germans then announced plans to shore up German banks in the event that Greece fails to meet the terms of its aid package and defaults. There is no reason to say this publicly other than to reassure investors about Germany. The last time the Germans paid this much attention to Greece, the solution involved Panzers. I hope that doesn't give Angela Merkel any ideas.

Nor was this the only oddly-public display by a German today. European Central Bank executive board member Juergen Stark quit to protest the bank's plan to buy sovereign bonds to help hold down borrowing costs for some debt-strapped euro zone members. I have no doubt Herr Stark was aware of how much this would unnerve people and did not make the move lightly. The Germans are impulsive only when it comes to beer.

Now I like traditions as much as the next person, but this thing about world-engulfing crises that start in the Balkans in September? That I could do without.

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