Stockholm Syndrome in Athens

The financial markets assumed all was well on Friday because German Chancellor Merkel gave into the demands of France and the ECB that it make no demands upon bondholders holding Greek debt as a condition for Greece receiving a bailout.

It was also mentioned last week that the IMF bluffed that they were going to withhold a $12 billion euro payment to Greece until it got its financial house in order.  The IMF caved in because it realized without the money, Greece would default and that would be bad for their loan-shark enterprises.

So markets went up and everyone "Ass out of U and Me" Assumed all was ok...

But life isn't that simple, and people/entities aren't that selfless.

First, mentioned in the previous posting, Germany isn't as gung-ho on conceding to the wishes of France and the ECB as they made it sound on Friday, and now this...

'Europe May Withhold Half of Greek Payment' -  Bloomberg

Hmmm.. seems Europe wants to play financial brinkmanship with Greece more than keeping their word or helping the bankrupt nation get on its feet...


"European governments weighed withholding half of Greece’s next 12 billion-euro ($17.2 billion) aid payment, seeking to keep the country solvent while maintaining pressure on the government to slash the debt that pitched the euro area into crisis.  Euro-area finance ministers may authorize only a 6 billion- euro loan to tide Greece through bond redemptions in July, while further aid hinges on Greek budget cuts"

In other words.. We didn't want to give you anything until you did things Our way... You called our bluff so we said we'd give you the full 12 billion euros no matter what.. But now we're mad at ourselves that you  got your way so we're changing the conditions by dangling 50% of your needed funds over your head.

A clearer way to understand the power dynamic at play:

Husband and wife- she is fully dependent on him for money.  She needs $50 to go to grocery store.  Husband says 'No' unless she gets her hair cut short and let's him have full say as to what she wears.   After a lot of fighting and sobbing, the husband relents... he gives the $50 so he will have food to eat, But then he gets resentful that she didn't back down, and decides he'll only give $25 for food. She will only get the other $25 when she gets the haircut and gives up control of her wardrobe selection.

In this example, the husband is a complete bastard, yes? The wife should get out of this sickening suffocating relationship Immediately yes?   Does she?  Well....

Well Greece--  How much will you take?