Dopamine's  Instablog

In addition, the EMF could contribute decisively to the

transparency of public finances because its intervention

mechanism in the case of failure would penalise all

derivatives and other transactions that had not been

previously registered with a special registry of public

debt, which the EMF would maintain.

The creation of a European Monetary Fund should be

seen as the best way to protect the interests of the

(relatively) fiscally strong member countries. Without

such an institution, a country like Germany would

always find itself in a ‘lose-lose’ situation if a country

like Greece is on the brink of collapse. If Germany

agrees to a rescue package, it puts its public finances at

risk. If it does not, its financial institutions would bear

the brunt of the considerable losses that would arise

from a disorderly failure and the ensuing contagion.

Given the weak state of the German banking system,

this would destabilize trust.

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The excert above was from a study done in Febuary, in Belgium by, Daniel Gros and Thomas Mayer. I have also read on the FT that the new EMF could be up and running by June. Given that the strongest country in the EU is Germany, and given that the banks in Germany are heavily exposed to the bad debt in Greece. Portugal is also showing it is the closest to Greeces poor credit rating.... This will be a summer of scorching waves of sweat, and not just from the sun.
I also imagine that as explained in the policy study that regarding the IMF, due to its Nato member the USA, the IMF wôuld be too soft on Greece, as Greece is a Nato member.

The key here to me, is that things have not even started to heat up. Stock up on MREs and popcorn...this will be some new age Repo action, German style.