David Mchugh, AP Business Writer, On Thursday June 16, 2011, 1:26 pm EDT
FRANKFURT, Germany (AP) -- Greece's economy is small but the shock waves from a default on its debt could be amplified by links in the global financial system to hurt stocks, banks and entire economies far from the epicenter in Athens.
In Greece, banks could go bust, overwhelming the government's ability to bail them out, and lenders in France, Germany and elsewhere in Europe could suffer serious losses.
And the resulting market turmoil could strain the European' Union's backstop fund, pushing European leaders to drum up yet more taxpayer financing, with voters already annoyed at funding other people's failed governments.
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More insolvent countries:
ReplyDeletehttp://www.guardian.co.uk/world/2011/jun/17/afghanistan-insolvency-within-month
no really .
ReplyDeleteand i thought the traitors in congress were looking out for us
It could
ReplyDeleteIt might
This is a possibility
Get ready; this may happen
It's beautiful man! Nobody fucking knows - they just throw enough shit on the wall hoping that one or 2 turds stick.
Ain't it great! Nobody has a crystal ball & when all is said and done
Then we'll know what happened
Not a fucking minute before
It's not the destination; it's the ride; buckle up and enjoy it because really; what the fuck are you gonna do about it besides not 1 tiny, measley little thing.
The shit is about to hit the fan. It will be far worst than 2008 financial crisis.
ReplyDelete10.35
ReplyDeleteThis still is the 2008 financial crisis.
not a new crisis.
Capitalism is fueled by credit supply and investment of capital with the expectation of making a profit.
But capital will not be invested if profits appear to be unlikely.
America was the first Ponzi to fall as it was unable to keep with the promosed dividend payments on Trillions of dud AAA debts.
The losses from that bankrupted many american and foreign banks creating a global financial crisis.
De-industrialised America was exposed as a parasitical economy running on credit from the rest of the world.
Since the money/ credit supply markets for collapsed in 2008 the Ponzi debt can has been kicked temporarily along the road for a while by money printing of ilusionary profits.
But many $ trillions in debts still exist.
The fact is that there were no real industrial wealth profits being created in America .Its remaining industry being mostly the military industrial complex subsidized by government.
The Treasury bill debts to bondholders for Empire supporting wars must still be paid and continualy mount up.
Thus america refuses to mend its ways and act economicaly responsibly dspite the debt crisis and demands austrerity for its own people to enable its creation of and the dividend servicing of even more war debts.
The cost of these wars is so huge the US and its allies had to resort to looting the invested sovereign wealth funds of Libya to help finance its lastest war!
By printing money after the GFC started the governments were able to exchange the bad mortgage and other debts of the finance sectors bonds.
Socialising the immediate losses in the first world.Traditional Capitalism was abandoned when Freddie and Fannie mortgage bonds were nationalised as property values began to collapse.
Government tax revenues will be used to pay for the current and future losses in Freddie and Fannie mortgage debts .
These bailouts cut into the ability of the US government to finance its usual amount of deficit sppending.
Even US Treasuries appear as a doubtfull investment as the huge money printing threatens to destroy the "strong" dollar.
But socialising past losses does not pay for the current losses.
Even in a now Corporate State America.
So the debt crisis breaks out at its weakest points in Greece and Europe this time but later in America again.
This is a global crisis for a globalised world.
China too printed money stimulus in the hope of recovery of the markets for its exports.
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