Green Square


As Sunday night comes into full view, and we in North America get ready to thank our Veterans for defending the US, its worth taking a look as who in Europe is going to be defending whom in the coming weeks.

The FT is currently breaking a story that not only has huge implications for Greece and the other sovereign nations in Europe, it has a bit of the look and feel of the pre-Lehman failure.  You can see it now… Popa and the Greeks sitting around the table with whoever the Paulson, Dudley and Geithner version of the European Three Stooges are this week.

“Oh you see,” they’d say “you don’t want Greece to fail because the downstream effects of a failure might be catastrophic.”  The Paulson figure looking sternly at Popa assuring him 1) the they have everything under control and 2) that if they do not comply with their prescriptive measures they may not get the badly needed liquidity they need to keep the country going.

And so the drama will play out and its playing out rather quickly at the moment with talks of the ECB or some arm coming in to run asset sales and tax collection (good luck with that guys and gals).

While the ECB and the remnants of the G8 look to try and measure up the situation we’ve done a bit of collecting ourselves.

What we are wanting to see is who is exposed to what and how.  The best recent aggregate tool we’ve seen can be found here on Reuters.

In order here’s who is exposed to who in the top three sovereigns of concern.

Love those fries - bonds not so much

Barca won Champion's League - but they can't save Madrid

Barca won Champion's League - but they can't save Madrid

Swapping Prada for Hermes

And just so we don’t forget, here’s the “Tower of Power” that IS DOWNSTREAM from Greece.  Not the Berlusconi would ever let the ECB help him collect (ahem!) taxes but we all know the Carabinieri could use the help!

That's a lot of exposure

Tower of Power



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