EU Bluffing

The market is excited about the Greece bailout. But the language is so vague, you just wonder if it is just bluffing. It is quite possible that any loan guarantee will not pass the German Parliament. Remember, Chancellor Merkel has a minority government and which is not very popular right now. Eventually, the market will force EU to show its hand. The reason Germany and French government want to support Greece is their banks have enormous exposure to Greece and other PIIGS countries. A showdown among market, government and public opinion may happen soon. Stay tuned.