Greek Fire, Part 10

The fire is spreading.  The EU has pledged $40 billion to Greece should Greece "need" it.

Not only does Greece need it, Greece wants twice that.  Zero Hedge:

It would be logical that the EU/IMF aid for Greece amounts to some 80 billion euros ($107 billion) over the next three years if the mechanism is triggered, a senior finance ministry official said on Sunday.

The senior offical said aid this year would amount to at least 30 billion euros from the euro zone and at least 10 billion from the IMF.

"40 billions for 2010 is part of a bigger amount for the three-year period. A logical amount for the three-year period would be double than 40 billion," the official told reporters.

The EU has now officially set a precedent for bailing out its nation-state members.  It's moral hazard on a multi-national scale now.  As Tyler Durden remarks:

Here is what happens when you green light Moral Hazard - in less than two hours after the videoconference in which the EMU announced €30 billion in aid for Greece, a Greek senior official has already come up and said that they were only kidding about needing just €40 or so billion (with the IMF's 10). The full amount will actually be double that, or €80 billion, for the three year period. Look for Portugal, Spain, Ireland, Bulgaria, Hungary, Latvia, and Lithuania to come knocking in the next 45 minutes. 

Greece won the lottery.  Why can't the rest of Europe's ailing friends cash in too?  "Where's our offer?  Aren't we a valuable member of the EU like Greece is?"  Everyone else will now demand their cut this spring too.  Watch.

Greek fire was famous for not being able to be put out.