Let's go back to back to 1979. That's not just the time that Greece's per-capita GDP was the closest it has been to parity with the EU-15, it's also gave us some of the best episodes of the inaugural season of "WKRP in Cincinnati."
One of my favorites featured a guest star Hoyt Axton as Jennifer's ex-boyfriend TJ and a hapless Johnny Fever involved in a plan to be her fake husband.
Johnny: What if this doesn't work?
Jennifer: Well, then, I'll just tell TJ the truth and let the chips fall where they may.
Johnny: (after a pause) Wait a minute, I'm the chips!
Last week it looked like the Greek scenario had tipped over to default becoming more likely. Now it look as if another inflection point has been reached and the EU leaders are so frustrated with Greece's attempts at austerity that they are willing to endure default (with the eurozone looking on more stable ground).
The AAA countries are now more willing to let the chips fall where they may.
And Spain should be saying "wait a minute, I'm the chips!"
Emboldened by a good response in their home countries for a more punitive stance on Greece, EU leaders are looking for another target and Spain is next, Reuters reported.
The EU said it was too early to say if Spain "would be punished," but that's a stark change in rhetoric from the pro-single-currency pronouncements in Davos less than a month ago. Setting their sights on the only country in trouble that's been called too big to fail is pretty risky posturing, if it is just posturing.
All the time the EU said it was worried about bond vigilantes toppling governments and pushing countries out of the euro. Now it wants to do their work for them.
I'm still not convinced the eurozone could really pull the trigger on default. That's simply because it has handled every step of the Greece situation, including its inauguration into the single currency, so badly. How would it manage to negotiate a swap of euros for a new currency or prevent a complete capital flight from Greece?
Chips are falling.
