Spain is to big to bail out, unless Europe turns on the Weimar printing press.
– Italy and Spain dragged into Greek crisis (Irish Independent, June 17 2011):
CONTAGION fears returned yesterday as both Italy and Spain were dragged into the debt crisis that has engulfed Greece.
The failure to manage the crisis in Greece is now shaking investor confidence in markets in countries that had been left relatively unscathed by the financial crisis.
Bond yields for Spain rose sharply yesterday to the highest level in more than a decade, and the country struggled to sell its government bonds for the first time this year. Following the Irish bailout, Spain was ranked as on of the weakest of eurozone bond issuers but this year the country successfully “de-coupled” from the distressed periphery.
– Europe’s ‘Lehman Moment’ Looms as Greek Debt Unravels Markets: Euro Credit (Bloomberg, Jun 16, 2011):
The European Union’s failure to contain the Greek debt crisis is sending fresh shockwaves through currencies, money markets, equities and derivatives.
The euro lost more than 2 percent against the dollar in the past two days and the cost of protecting corporate bonds soared to the highest level since January, with credit-default swaps anticipating about a 78 percent chance that Greece won’t pay its debts. Equities declined around the world, while a measure of fear in fixed-income markets jumped the most since November.
A Greece default may trigger a US recession??? Greece???
So with the US being already in the GREATEST DEPRESSION a Greece default would actually save America then!!!
Under normal circumstances a Greece default would have not been able to trigger a German fart (Please forgive me people of Greece, I am on your side.), but that has changed since all those bankster bailouts intentionally bankrupted Europe.
The bankster bailouts around the world have been the biggest planned bank robbery in world history and the elitists (the bank robbers) controlling the MSM, the banksters and the governments got away with it.
The real financial crisis has only just begun. Everything so far has been ‘peanuts’ compared to what is coming.
Anyhow, who still believes a single word that this old reptile Greenspan is saying?
– Greenspan Says Greece Default ‘Almost Certain,’ May Trigger U.S. Recession (Bloomberg, Jun 17, 2011):
Alan Greenspan, former Federal Reserve chairman, said a default by Greece is “almost certain” and could help drive the U.S. economy into recession.
“The problem you have is that it’s extremely unlikely the political system will work” in a way that solves Greece’s crisis, Greenspan, 85, said in an interview today with Charlie Rose in New York. “The chances of Greece not defaulting are very small.”
And now moving to a US near you…
So the fact that Greece itself was stretched further on the rack was not the be all and end all of the new credit crisis and catalyst of the latest Libor jitters.
In reality, analysts immediately warned that the ramifications of any action on the ‘threat’ of French Bank downgrades was this time a significant event in the financing market.
When other EuroZone Banks had been downgraded or threatened with downgrades, the markets were to some extent immune because any shortfalls in Euro funding were continually topped up via swapped Dollars.
However, this ‘$-Funding’ has been dominated by the Big French Banks and now we see the reality of such a polarized or skewed funding profile for Europe.
Not only are these French Banks significant players in the short-term $ markets, but many investors have large exposures to these entities either via CP?CD/ABCP or the Repo Markets.
**Based on the current market info on their money-market activities, we are told that the 3main French Banks collectively account for as much as 50% of all Eurozone CP/CD exposure as at recent month-end (31st May)…and, furthermore, they account for almost 15% of $ Repo Markets as per the end of Q1 2010 (31st March).!!!**
– Charting Key Breakdown Levels In The EURUSD, The S&P, The VIX And The Spanish 10 Year (ZeroHedge, June 15, 2011)
– Europe Braces for Serious Crop Losses and Blackouts (Scientific American, June 13, 2011):
LONDON — One of the driest spring seasons on record in northern Europe has sucked soils dry and sharply reduced river levels to the point that governments are starting to fear crop losses and France, in particular, is bracing for blackouts as its river-cooled nuclear power plants may be forced to shut down.
French Agriculture Minister Bruno Le Maire warned this week that the warmest and driest spring in half a century could slash wheat yields and might even push up world prices despite the U.N. Food and Agriculture Organization’s predicting a bumper global crop due to greater plantings.
For your information …
Watch this video from 2:25 to 2:40:
– Greek PM to form new government (Al Jazeera, June 15, 2011):
George Papandreou, the Greek prime minister, has in a televised address said he will form a new government on Thursday and seek a vote of confidence from his PASOK parliamentary group.
His announcement on Wednesday came shortly after the opposition turned down his offer to stand down to facilitate the formation of a unity government for passing tough austerity measures.
“I will continue on the same course. This is the road of duty, together with PASOK’s parliamentary group, its
members, and the Greek people,” Papandreou said.
“Tomorrow I will form a new government, and then I will ask for a vote of confidence,” he said.
He had earlier said the proposed new unity government must support the European Union and International Monetary Fund (IMF) bailout, and should not seek to overhaul it.