EUROZONE/ GREECE / FRANCE: Sarkozy's Plan To Save The World, Euro...But Especially French Banks; Lagarde Takes The IMF Reins.

BBC/ R. Peston, Analysis

Factoid as reported in today's WSJ:  French banks' exposure to Greek debt is $56.7bn...while German banks hold $34bn.


France's President Sarkozy has proposed a complex Greek debt rollover/reinvestment scheme for investors...featuring 50% of proceeds reinvested in 30 year bonds at 5.5% up to 8%...with 20% in zero coupons.
What does it mean...and why is it important?

BBC biz editor Peston wades into the economic weeds.

BBC: "...if there were a default by the Greek state even on a tiny element of what it owes, bankers would be forced in one fell swoop to write down the value of their loans to the government and probably take losses on associated credit too.

AND:"... if you are curious about why France and Germany appear to be the bosses of the process of attempting to secure Greece's financial future, it is not just that they have the biggest economies in the eurozone: their banks have the most to lose from a Greek default, with French banks most exposed.

"...that $100bn of potential losses for non-Greek banks becomes multiplied by many times if a Greek default were to spark more acute financial woes for the dominoes next in line, Ireland and Portugal." 

And...then there's the unthinkable default... giant Spain!

Also...as added insurance...Sarkozy's former FM...Cristine Lagarde will almost immediately take over at the IMF. That by itself is highly unusual. 

Will she endorse Sarkozy's plan?

Do old shoes feel more comfortable than a new pair?

Bien sur, mon cheri...bien sur!

For OPINION by Peter Chowla. Lagarde may be the first woman boss but she's not a reformer.

"Lagarde's first instinct after the announcement of her appointment was to continue pushing the country ( Greece) towards a downward spiral of austerity, unemployment, and recession."

http://www.guardian.co.uk/commentisfree/2011/jun/29/christine-lagarde-imf-reform

MEXICO/ FRANCE : Ambassador Walks Out As Sarkozy "Goes Crazy" Demanding Kidnapper's Release.

GUARDIAN/
K.Willsher, J. Tuckman/

     Mexico's ambassador in Paris walked out of a meeting in the French senate when the matter of kidnapper Florence Cassez was again brought-up.
    "Mexico cannot tolerate that judicial affairs be repeatedly dragged into (other, separate matters)."
     Cassez recently lost her final appeal in a 60-year jail sentence in Mexico.
    Sarkozy has described Cassez as a victim of injustice and demanded she be moved to French custody on humanitarian grounds.
     Mexican novelist Carlos Fuentes, a former ambassador to France, describes Sarkozy of behaving like a "dictator of a banana republic" in mixing cultural relations with political, judicial and diplomatic ones.
     Some in France wonder why Sarkozy has adopted her as a cause célèbre when there are 2,500 other French prisoners in jail abroad, including at least one facing imminent execution.

MONDAY MORNING MOVIN' MUSIC: From ROMANIA..."Sarkozy Vs The Gypsy."

THEWORLD.ORG/ 4:26 Music Video /

   Sadly, zenophobia is in the air.
   Recently, French President Nicolas Sarkozy expelled thousands of Roma people aka gypsies to boost his waning popularity over fiscal reforms.
    In this music video, Romanian rock band Vama mocks Sarkozy.
    Get ready. The music is raucous...and lively.
   And, surprisingly popular in France but NOT in Romania.
   Go figure!

Czechs To Delay EU/Lisbon Treaty Signing.

LONDONTIMES.UK/
"EU leaders are said to be furious that the Czech Republic is planning to delay signing the Lisbon treaty for up to six months even if the Irish vote "yes" in their referendum next month.
The country might even try to delay it until after the British general election campaign when a Tory victory would see the question put to voters by David Cameron.
Nicolas Sarkozy, who helped to draw up the treaty after the French and Dutch voted against its predecessor, the EU Constitution, has warned Prague that it faces "consequences" if it does not swiftly follow an Irish "yes" with its own ratification."

Female Who Caught Obama and Sarkozy's glances is Brasilian.

From Brazzilmag.com.

A 16-year-old Carioca (from Rio) caught the eye of France's president Nicolas Sarkozy...and maybe Barack Obama, too, at the just concluded G-8 meeting in Italy.

There's a photo/video playing on YouTube.