Greece

In the same conversation as the Dubai meltdown, Greece has been mentioned by many as the economy on the least stable footing.   However, Greece does not have a family member willing to pony up billions to keep things in tact.  It appears that much of their hope lies with the IMF. However, the IMF might not have the financial wherewithal to do so.

The idea that they might be in trouble is one thing, the fact that they are falsifying data is an entirely different deal.

In a damning report published as the eurozone grapples with its worst financial crisis since the euro’s launch in 1999, the Commission said figures from Greece’s were so unreliable that its budget deficit and public debt might be even higher thangovernment had claimed last October.

FT.com / Europe – Greece condemned for falsifying data.

As we have been saying for quite some time, the AIG bailout was an indirect bailout of many entities.  This allowed for 1 hated entity (AIG) to take the fall for many that would be better off not tarnished (GS).  There would have also been a major backlash due to the foreign entities that benefited from the AIG (100 cents on the dollar) bailout.

The Federal Reserve Bank of New York, then led by Timothy Geithner, told American International Group Inc. to withhold details from the public about the bailed-out insurer’s payments to banks during the depths of the financial crisis, e-mails between the company and its regulator show.

AIG

via Geithner’s New York Fed Told AIG to Limit Swaps Disclosure – Bloomberg.com.