Greece is finished

The Greek political leadership knows it and they're lashing out, since it's the only thing left to do, Greece turns on EU critics.

Greece on Friday unleashed a fierce attack on its European Union partners, accusing them of creating a “psychology of looming collapse” a day after they pledged support for the country’s crisis-hit government.

George Papandreou, Greek prime minister, said that, in the eurozone’s first big test, Greece had become “a laboratory animal in the battle between Europe and the markets”.

In a televised address to his cabinet, he criticised EU members for sending “mixed messages about our country . . . that have created a psychology of looming collapse which could be self-fulfilling”.

It's not self-fulfilling because of psychology, it's self-fulfilling because every individual/business/country has a debt limit. However, if you believe in psychology alone, then the words from the Greek Prime Minister shows that even the Greek political leadership knows they are finished.

Germans say euro zone may have to expel Greece: poll

The Emnid poll for Bild am Sonntag newspaper showed 53 percent of Germans asked said the European Union should, if necessary, expel Greece from the euro zone.

Auf wiedersehen!
Greece Remains a Political Time Bomb
David Goldman says of Greece:

Although Greece is an EC member, its finances and political system have the character of a banana republic. EC membership, though, enabled Greece to borrow far more money than any banana republic, such that the country’s debt-to-GDP ratio is about triple that of Argentina just before the latter’s bankruptcy in 2000. And because Greece is an EC member, the size and adumbrations of a bankruptcy would be much, much larger than that of any Latin American country.

He also relays an email sent to him:

According to the President of the National Bank of Greece, 30% of the budget of the last administration was unaccounted for—yes, just disappeared into the coffers of their families and well-wishers, and I would guess the other 70% was never audited.