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I hear it might be over in Greece, rioting and the PM is going to resign; hearing that Portugal and Ireland will default as well but who knows. Is the US the next domino?
I hear it might be over in Greece, rioting and the PM is going to resign; hearing that Portugal and Ireland will default as well but who knows. Is the US the next domino?
Dow only down 175 points at this time...
Definitely us next and especially when the EU imposes tough conditions for bailing us out.
100% Chance of Greek Default, Says Niall Ferguson
Tuesday, June 14, 2011, 11:39am EDT
Greece has a 100% chance of defaulting, according to noted financial historian Niall Ferguson.
Ferguson, a history professor at Harvard University and a Bloomberg Television contributing editor, presented his dire outlook for the Greek debt crisis in an interview this morning.
“The key point here is that this has moved from being a crisis of public finance on the periphery,” according to Ferguson, “to being a major institutional conflict between the biggest economy in the European Union (EU) and the European Central Bank (ECB).” (my addition, think bundesbank vs EU)
Ferguson also noted that Greece has a history of defaults going back to the early 19th century. When asked on a scale of 1 to 10 what the chances of another default are, he responded with a 10.
The Harvard professor’s comments follow yet another downgrade of Greek debt yesterday by Standard & Poor’s, which reduced its rating to CCC, the lowest rating among any sovereign nation it covers.
clearly, the greek "crisis" is not yet contained.
niall ferguson gave an interview on the keynesian money printing and how it was unlikely to work earlier:
The funny thing is that Portugal for instance suffers from what is going on in Greece. The interest rates on fresh cash has climbed to record heights here although there were no negative news or anything for Portugal. Somehow investors, banks, brokers, etc. seem to be lumping all countries together just in order to artificially deepen the crisis and make more money on it.
The funny thing is that Portugal for instance suffers from what is going on in Greece. The interest rates on fresh cash has climbed to record heights here although there were no negative news or anything for Portugal. Somehow investors, banks, brokers, etc. seem to be lumping all countries together just in order to artificially deepen the crisis and make more money on it.
I think because Portugal and Ireland have similar debt /borrowing abilities as Greece does at the moment. All 3 are dead in the water (default) if they didn't have the IMF and ECB bailing them out. TBH, I think it's easier to walk away from the Eurozone, default, than try to repay an unpayable debt. There will be pain but that ensures it's shared among creditors and debtor nation.
The funny thing is that Portugal for instance suffers from what is going on in Greece. The interest rates on fresh cash has climbed to record heights here although there were no negative news or anything for Portugal. Somehow investors, banks, brokers, etc. seem to be lumping all countries together just in order to artificially deepen the crisis and make more money on it.
there is negative news on portugal. maybe you just haven't seen it:
i wish people would take the time to read rothbard's repudiating government debt. it is even more relevant now with the printing presses at full steam:
the whole article is interesting, but this to me stands out:
In a free-market economy that respects property rights, the volume of private debt is self-policed by the necessity to repay the creditor, since no Papa Government is letting you off the hook.
papa government has let too many people off the hook, making too many bad calls and crooked decisions. these people are no better than thieves, KNOWINGLY packaging fraudelent bundles, and foisting them on unsuspecting/too trusting investors until they just can't do it anymore.
let them eat crow, not us.
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