Lost in the hoopla surrounding Greece’s self-created financial mess is a simple fact. Greece, like most southern European countries, is far from a political or economic powerhouse. Its GDP contributes a scant 2% of the EU’s total.

Then why all the noise? Why the excitement surrounding an economic player that amounts to not much more than a rounding error?

There’s fear and panic on several levels. Some are concerned Greece’s troubles are a microcosm of other EU member states. Others are concerned of a regional contagion infecting the banking system and the large global banks with sizable investments in Sovereign debt.

In this sense Greece matters because of potentially negative effects on investor psychology. We needn’t look much further than Lehman’s collapse in 2008 and how it nearly took down otherwise healthy financials such as JPMorgan Chase or Goldman Sachs to understand what happens when confidence is shattered.

The real reason to pay attention to Greece, however, is not its impact in the short-term but the lessons we can learn from the mess they’ve put themselves in.

The Greeks have spent a lifetime – several in fact – living beyond their means. Deficit spending can last only as long as someone is willing to lend in order to fund it. When credit dries up the music stops and the weakest are left with nowhere to sit – destined to be yet another loser in the game of economic and financial musical chairs.

Americans are not immune to the disease of overspending. Consumers have long gorged themselves at the trough of cheap and easy credit. “Financial responsibility be damned” was a common motto when HELOCs and 0% credit card offers were plentiful. It was only when the credit markets seized post-Lehman that the party ended. Forced selling of assets at artificial lows resulted in massive losses. (Hey, maybe the Greeks ought to sell naming rights to The Parthenon?!)

If we Americans can’t help ourselves then our paternalistic Federal government must help us. After all if we buy into the political tone of Washington then they know best how to solve our problems, right? (Any chance those loans to GMAC will ever be repaid?)

Well Mr. Obama you’ve got a living, breathing example in Greece of what not to do. Can you hear it Ms. Pelosi? Can you see it Mr. Reid? Now is not the time for trillion dollar deficits. Now is not the time for massive new spending initiatives. Now is not the time for punishing taxes on incomes and capital formation.

Uncle Sam’s checking account has insufficient funds. Someday the Chinese and Japanese and OPEC states will stop funneling their massive surpluses back to the US. When they stop buying our Treasuries we’ll have no choice but to print money like it’s going out of style. Hyperinflation anyone?

In sum Greece matters because their mess reminds individuals and governments alike of a few simple truths – work hard, play fair, spend less than what you earn, don’t spend money you haven’t yet earned and don’t rely on someone else to keep you true to these principles.