The Financial Times reports that Greece has been given just one month to explain to Europe's finance ministers that it's doing everything it can to stave off financial collapse. No doubt the Greek government will have to explain that there was nothing wrong with Wall Street helping Greece hide its debt, something I blogged about here.
The Guardian reports that the European parliament wants EU authorities to investigate the role of Goldman Sachs and other investment banks in hiding the debt.
The worrying part is that we haven't seen the end of this and that the worst is yet to come. A bomb exploding outside JP Morgan offices in Athens might be a sign of what's ahead.
It's still early days. As Guy Debelle, assistant governor of the Reserve Bank of Australia said in a speech, things might get a lot worse.
"A significant risk, in my assessment, is that we are still yet to see the full impact of the weakness in the North Atlantic economies on the loans on the books of financial institutions,'' Debelle said. "The bulk of the losses to date by these institutions have been write-downs in the value of securities held on their books. While these write-downs have been absorbed, albeit with some difficulty and with substantial capital raisings, given the size of the output contraction, one would expect that we are not all that far advanced in the adverse credit cycle that normally accompanies recessions."
Watch this space. Because if he is right, it will stop any global recovery.
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