Stacy Summary:  Of course, all the hedge funds and Goldman Sachs’ of the world knew they could count on the German government ultimately capitulating and paying off these debts to them; I am sure they had fun playing yet another game of chicken.  (@Phil/Germany and others from Germany, I’d like to know how this story has been playing out in your country; I believe the German population had to be promised that joining the euro would not leave them vulnerable to precisely this sort of event of bailing out other nations?  Thanks for your opinion in comments).  Merkel is denying the report, but it looks like the speculators have written the story for her.

• Germany backs Greek bailout

Update:

• Greece revises 2009 budget deficit from 12.2% to 16%