Greece Gives Germany And European Union One Week Ultimatum (No, You Are Not Dyslexic)

First 130 Congressmen, now Greece: the examples of people who have no idea what the definition of negotiating leverage means just don't stop. G-Pap has decided to go all in on 2-7 off suit. The problem is everyone knows what his cards are, and his bluff is about to be promptly called by everyone; too bad the Cyclades are still not in the pot. Give them a few weeks... Bloomberg reports that: "Greek Prime Minister George Papandreou set a one-week deadline for the European Union to craft a financial aid mechanism for Greece, challenging Germany to give up its doubts about a rescue package." And here we were thinking only Bernanke was clinically insane. G-Pap, it turns out, is shocked that someone can just say no to his generous offer of allowing someone else to bail him out. Act now, or in one month when you can buy Greece (and its islands) in a 363 sale, it will be too late (to overpay).

From Bloomberg:

“It’s an opportunity to make a decision next week at the
summit,” Papandreou told reporters in Brussels today. “This is
an opportunity we should not miss. When you have that instrument
in place, that could be enough to tell the markets hands off, no
speculation, let this country do what it’s doing.”

Greece pinned its hopes on the Brussels summit as German
officials voiced qualms about an EU-led rescue, potentially
backtracking on a commitment hammered out by finance ministers
just three days ago. Greek bonds and the euro fell.

Greece, which was brought to a standstill on March 11 by
the second general strike this year, needs to raise about 10
billion euros ($14 billion) to refinance bonds that come due on
April 20 and May 19. Papandreou said Greece cannot afford to
keep paying current market rates.

The question of the day: are the acconts who bought into Greece's most recent 10 year bond offering already underwater:

The yield on Greece’s 10-year government bond rose 14 basis
points to 6.23 percent at 2:25 p.m. in Brussels. The euro fell
for a second day against the dollar, slipping as much as 0.7
percent to $1.3648. Credit-default swaps on Greek sovereign debt
rose 7 basis points to 295, the highest in a week, according to
CMA DataVision prices.

And just to show that there is absolutely no confusion which way Germany is leaning when it comes to G-Pap's ultimatum, Germany kindly suggested that Greece should leave the European Monetary Union. Asap. From Market News.

The head of Germany's Ifo economic research
institute on Thursday said the best way to solve the Greek financial
crisis is for the country to leave the eurozone.

"I would recommend that Greece leaves the European Monetary Union,"
Sinn said at a press conference in Berlin. The country should then
devalue its currency and a debt moratorium should be put in place, he
proposed.

"This would be cheaper [for the other Eurozone countries] then to
permanently finance Greece," Sinn said, arguing that Greece's biggest
problem was its elevated foreign trade deficit and not mainly its high
public debt.

In the meantime, the market once again ignores all bad news, and just focuses on whatever good news there is, even if it means the reading of a Philly Fed, whose upward buoyancy is about to come to an end as the artificial economic stimulus begins to finally wane.