Don't forget that behind all this mess is actually Goldman Sachs:

http://www.thefastertimes.com/westerneurope/2010/02/20/goldman-greece-its-all-one-big-conspiracy-man/

The most shocking aspect of this affair is without doubt the role played by Goldman Sachs, which, while at the same time advising the Greek government, has also taken secret positions against Greece and the euro.

And this coming in the same week that it was reported in Der Spiegel and the New York Times that, back in 2002, Goldman helped the Greek government conceal some of its debts from the European Union through a series of complex derivative transactions. The sole purpose of these transactions would appear to be to sidestep EU reporting requirements and paint a misleading picture of Greek finances. That news drew a lot of ire. Even the normally circumspect German Chancellor Angela Merkel lashed out, saying, “It’s a scandal if it turned out that the same banks that brought us to the brink of the abyss helped fake the [Greek] statistics.”

But potentially more damning is the assertion made by Mr. Quatremer, that Goldman Sachs has been taking advantage of its advisory role, and profiting at the expense of Greece.

… on 25th of January, Greece managed to place 8 billion euros in 5-year paper, even though the original intention had been to issue only 3 billion: demand had reached 25 billion euros! Goldman Sachs was certainly among the syndicate that placed this Greek paper. Up to that point, nothing out of the ordinary… After this spectacular success, everyone thought that the markets had calmed down… But then starting Wednesday [Jan. 27th] another storm hit. An article from the Financial Times… had just confirmed news to the effect that China had refused to buy 23 billion euros of Greek debt, a “private placement” engineered by . . . Goldman Sachs. What was this about? When a government fears that it won’t be able to place its debt, it asks a bank directly to place it on its behalf with one or several investors. It’s a sign of panic. And the fact that Beijing was said to have declined the offer was downright disturbing. In short, two reasons for the markets to flee Greece. [Athens] denied this, but the markets nevertheless increased the risk premium they assigned Greece, boosting [Goldman's] profits.

Of course, Goldman Sachs is a huge bank, with a massive derivatives business that entails managing tremendously complex and often offsetting positions. But if the story’s true, Goldman’s actions have been ethically dubious at best. And in the eyes of the European public, it all must seem downright nefarious. Politicians respond to the public mood, and regulators in Europe don’t need much more motivation to start clamping down on financial market shenanigans. Already the new EU Internal Market Commissioner, Michel Barnier, has stated his intention to regulate the sovereign CDS market. But that’s just the tip of the iceberg. As he recently told Le Figaro, “No market, no actor, no product and no territory can go without relevant regulation and efficient supervision.” So, look out, markets: here come the regulators.

But for Goldman, at least in Europe, the tarnish on their image may be more worrisome. Goldman Sachs was already a lightning rod for conspiracy theory. Now this Greek episode may burn that image into Europe’s retina. As the French magazine Marianne recently put it, “How do you never lose? If you’re Goldman Sachs, you play from both sides of the table.” I can think of another group of people who profit no matter if their clients win or lose: arms dealers…