Before anyone can savor the possible bailout/backing of Greece debt by Germany, we get these series of comments:
Greek bonds and equities had rallied prior to these comments and now the EU summit is doubted as to whether any debt guarantee will be forthcoming.
Clearly, the Germans are worried about opening up their check book and subsidizing profligate country spending within the EU.
The question now arises as to how Greece can resurrect itself and deal with the massive government deficit.
Here's an incomplete list of what they need to do and it should sound very familiar to US citizens:
The last one is what California is experiencing and should be a shining example for other states within the US union.
How the European Union deals with Greece will be a precursor for how other nations deal with their own debt.
Ultimately, neither Greece nor California will likely be allowed to default. The question remains as to whether either fiscally challenged state can deal with the concept that you can't spend what you don't have.
(Editor's Note: PIIGS, Portugal, Italy, Ireland, Greece and Spain)
Programming Note: Andy Busch will be a guest LIVE on CNBC at 11 am/et today
Andrew B. BuschDirector,