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The Next Great European Financial Crisis Has Begun

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European Financial CrisisThe Greek financial system is in the process of totally imploding, and the rest of Europe will soon follow.  Neither the Greeks nor the Germans are willing to give in, and that means that there is very little chance that a debt deal is going to happen by the end of June.  So that means that we will likely see a major Greek debt default and potentially even a Greek exit from the eurozone.  At this point, credit default swaps on Greek debt have risen 456 percent in price since the beginning of this year, and the market has priced in a 75 percent chance that a Greek debt default will happen.  Over the past month, the yield on two year Greek bonds has skyrocketed from 20 percent to more than 30 percent, and the Greek stock market has fallen by a total of 13 percent during the last three trading days alone.  This is what a financial collapse looks like, and if Greece does leave the euro, we are going to see this kind of carnage happen all over Europe.

Officials over in Europe are now openly speaking of the need to prepare for a “state of emergency” now that negotiations have totally collapsed.  At one time, it would have been unthinkable for Greece to leave the euro, but now it appears  that this is precisely what will happen unless a miracle happens…

Greece is heading for a state of emergency and an exit from the euro following the collapse of talks to agree a bailout deal, senior EU officials warned last night.

Europe must be prepared to step in otherwise Greek society would face an unprecedented crisis with power blackouts, medicine shortages and no money to pay for police, they said.

In the past, the Greeks have always buckled under pressure.  But this new Greek government was elected with a mandate to end austerity, and so far they have shown a remarkable amount of resolve.  In order for a debt deal to happen, one side is going to have to blink, and at this point it does not look like it will be the Greeks

The world’s financial markets are facing up to the possibility that Greece could soon become the first country to crash out of Europe’s single currency. Talks between Athens and its eurozone creditors have collapsed in acrimony just days before a final deadline for Greece to unlock the €7.2bn (£5.2bn) in bailout funds it needs to avoid a catastrophic debt default.

The Greek Prime Minister, Alexis Tsipras, accused the creditor powers of hidden “political motives” in their demands that Greece make further cuts to public pension payments in return for the financial aid. “We are shouldering the dignity of our people, as well as the hopes of the people of Europe,” Mr Tsipras said in a defiant statement. “We cannot ignore this responsibility. This is not a matter of ideological stubbornness. This is about democracy.”

As we approach the point of no return, both sides are preparing for the endgame.

In Greece, members of parliament have been studying what happened in Iceland a few years ago.  Many of them believe that a Greek debt default combined with a nationalization of Greek banks and a Greek exit from the euro could set the nation back on the path to prosperity fairly rapidly.  The following comes from the Telegraph

The radical wing of Greece’s Syriza party is to table plans over coming days for an Icelandic-style default and a nationalisation of the Greek banking system, deeming it pointless to continue talks with Europe’s creditor powers.

Syriza sources say measures being drafted include capital controls and the establishment of a sovereign central bank able to stand behind a new financial system. While some form of dual currency might be possible in theory, such a structure would be incompatible with euro membership and would imply a rapid return to the drachma.

The confidential plans were circulating over the weekend and have the backing of 30 MPs from the Aristeri Platforma or ‘Left Platform’, as well as other hard-line groupings in Syriza’s spectrum. It is understood that the nationalist ANEL party in the ruling coalition is also willing to force a rupture with creditors, if need be.

Meanwhile, in a desperate attempt to get the Greeks to give in at the last moment, Greek’s creditors are preparing to pull out all the stops in order to put as much financial pressure on Greece as possible

Germany’s Suddeutsche Zeitung reported that the creditors are drawing an ultimatum to the Greeks, threatening to cut off Greek access to the European payments system and forcing capital controls on the country as soon as this weekend. The plan would lead to the temporary closure of the banks, followed by a rationing of cash withdrawals.

For a long time, most in the financial world assumed that a debt deal would eventually happen.  But now reality is setting in.  As I mentioned at the top of this article, the cost to insure Greek debt has risen by an astounding 456 percent since the beginning of this year

Given these dramatic stakes, the risk of a Greek default has gone way up. One way to measure that risk is by looking at the skyrocketing price of insurance policies that would pay out if Greek bonds go bust. The cost to insure Greek debt for one year against the risk of default has skyrocketed 456% since the start of the 2015, according to FactSet data.

These insurance-like contracts, known as credit default swaps, imply there is a 75% to 80% probability of Greece defaulting on its debt, according to Jigar Patel, a credit strategist at Barclays.

The probability of a Greek default soars to a whopping 95% for five-year CDS, Patel said.

“Default is looking more and more likely,” Peter Boockvar, chief market analyst at The Lindsey Group, wrote in a note to clients on Tuesday.

And in recent days, we have also seen Greek stocks and Greek bonds totally crash.  The following comes from CNN

The Greek stock market has plummeted 13% over the past three trading days, including a 3% drop on Tuesday alone.

In the bond market, the yield on Greek two-year debt has skyrocketed to 30.2%. A month ago, the yield was only 20%. Yields rise as bond prices fall.

Of course if there is a Greek debt default and Greece does leave the euro, it won’t just be Greece that pays the price.

As I have written about previously, there are tens of trillions of dollars in derivatives that are directly tied to currency exchange rates and 505 trillion dollars in derivatives that are directly tied to interest rates.  A “Grexit” would cause the euro to drop like a rock and interest rates all over the continent would start to go crazy.  The financial chaos that a “Grexit” would cause should not be underestimated.

And there are signs that some of Europe’s biggest banks are already on the verge of collapse.  For example, just consider what has been going on at the biggest bank in Germany.  Both of the co-CEOs at Deutsche Bank recently resigned, and it is increasingly looking as if it could soon become Europe’s version of Lehman Brothers.  The following summary of the recent troubles at Deutsche Bank comes from an article that was posted on NotQuant

Here’s a re-cap of what’s happened at Deutsche Bank over the past 15 months:

  • In April of 2014,  Deutsche Bank was forced to raise an additional 1.5 Billion of Tier 1 capital to support it’s capital structure.  Why?
  • 1 month later in May of 2014, the scramble for liquidity continued as DB announced the selling of 8 billion euros worth of stock – at up to a 30% discount.   Why again?  It was a move which raised eyebrows across the financial media.  The calm outward image of Deutsche Bank did not seem to reflect their rushed efforts to raise liquidity.  Something was decidedly rotten behind the curtain.
  • Fast forwarding to March of this year:   Deutsche Bank fails the banking industry’s “stress tests” and is given a stern warning to shore up it’s capital structure.
  • In April,  Deutsche Bank confirms it’s agreement to a joint settlement with the US and UK regarding the manipulation of LIBOR.   The bank is saddled with a massive $2.1 billion payment to the DOJ.  (Still, a small fraction of their winnings from the crime). 
  • In May,  one of Deutsche Bank’s CEOs, Anshu Jain is given an enormous amount of new authority by the board of directors.  We guess that this is a “crisis move”.  In times of crisis the power of the executive is often increased.
  • June 5:  Greece misses it’s payment to the IMF.   The risk of default across all of it’s debt is now considered acute.   This has massive implications for Deutsche Bank.
  • June 6/7:  (A Saturday/Sunday, and immediately following Greece’s missed payment to the IMF) Deutsche Bank’s two CEO’s announce their surprise departure from the company.  (Just one month after Jain is given his new expanded powers).   Anshu Jain will step down first at the end of June.  Jürgen Fitschen will step down next May.
  • June 9: S&P lowers the rating of Deutsche Bank to BBB+  Just three notches above “junk”.  (Incidentally,  BBB+ is even lower than Lehman’s downgrade – which preceded it’s collapse by just 3 months)

And that’s where we are now.  How bad is it?  We don’t know because we won’t be permitted to know.  But these are not the moves of a healthy company.

For a very long time, I have been warning that a major financial crisis was coming to Europe, and for a very long time the authorities in Europe have been able to successfully kick the can down the road.

But now it looks like we have reached the end of the road, and a day of reckoning is finally here.

Nobody is quite sure what is going to happen next, but almost everyone agrees that it isn’t going to be pretty.

So you better buckle up, because it looks like we are all in for a wild ride as we enter the second half of this year.

  • chilller

    And down the rabbit hole we go!

  • Mike Smithy

    How exciting.

    • Max

      Don’t forget the jujubes!

      • Malcolm Reynolds

        Hot Tamales.

        • Max

          Oh yeah, those are also included in the rotation

    • Mondobeyondo

      “A splendid time is guaranteed for all”…

  • Hillbilly

    We will all be living in a different world by the end of the year.

    • wiseguyyukyukyuk

      no crap sherlock the world is always changing duuuuuh!

      • df NJ

        I long for the days when the US Constitution had meaning and our people had power.

  • Greece default on their debt?! I heard that Greece would default starting the 6th of June and cause panic in the EU!?!? Oh this will be a fun summer! The summer of riots!

  • Bill

    Michael, what the heck did I say that requires your approval? Come on say it here say it now. This is ridiculous.

    • Calm down Billy… many of us have the same thing especially if you include a web link… or a really bad word 🙂
      It’s an automated filtering device in the blog system

      • Bill

        There it is above ,you tell me.

        • K

          No filter is perfect. If I had to guess. gas can, spark, and the result you noted. Perhaps it interpreted it as a threat.

          • df NJ

            The filter is really whacky. I re-post a lot of times to get past the filter. I used the
            word Z ionist one time an apparently that’s a bad word. LOL!

  • K

    As I have stated in the past. I can see no advantage to the Greeks staying in the EU. The only way this does not happen. If the Germans blink. Just out of fear how messy this could get. But I think this time, is the real deal.

    • alan

      Just keep borrowing because in the end they will never be able to pay it back.

  • greanfinisher .

    Take it for what it’s worth, but I would certainly keep the balances low in both the banks and the credit unions. Remember this, in the event of a major bank failure here, the feds are absolutely going to do whatever it takes to prop up that bank. Believe me, they won’t give the collateral damage a second thought when seizing savings and retirement accounts across the board to achieve that end.

    • Ant Just Ant

      Hello All + it would be nice if we could get some details on how to prepare correctly and get our homes in order instead of all this back and forth. The US is in a crap load of debt as well as Europe so how do we prepare>

      • greanfinisher .

        I think that it’s far too late to get the house in order at this point. Best to horde U.S. Treasury Securities (Preferrably the Series I, or even the Series EE Bonds), cash, silver, batteries, cooking oil, staples and plenty of canned goods.

  • nohomehere

    Certain port cities in Greece have started bartering using a private currency at par with the euro . Europe is not a single nation it is a monetary union ! What fidelity does any member have ? Money will anticipate the next move long before brussels can act! capitol controls the likes of which no one has ever seen , well , almost never, sig ….maybe they will just do away with cash make it illegal to have !

  • T.

    “There Will Be NO Greek Default In June And Greece Will Not Leave The EU In June”
    The International Banking Cartel (Which Runs The World Today) has a date circled for the Financial Crash to occur after September 1st, 2015.
    When Greece Defaults (and they will), this will set off the 500 Trillion Dollar daisy chain of Derivatives. The Banksters have a date circled on Their calendar some time after September first, 2015.
    It will not happen before They want it to.

    • Kochvilledi

      I am curious. Why do you think the bankers want this?

      • T.

        Simply – They want to Own and Rule the World for Their master, Satan.

        • Mike Smithy

          The western central banksters will retaliate by claiming that Greece is harboring terrorists and an invasion is warranted in 3.2.1….

    • alan

      Why not pick tomorrow?

      • T.

        See my answer above to the lizard.

    • pissedlizard كافر ‏

      And you got that specific date from….?

      • T.

        From studying these Bankster Devils for the last ten years. They are Satanists. They operate on a cabalistic time table. There are others who have picked up on Their ways – But it comes from study and research Only.

    • SunnyFlaSnotress

      Yeah, well, Greece hasn’t been such a SuperPower since the days of Plato and the Parthenon anyways.. not that this won’t hurt anyone.

    • B-Free (NL)

      Greece is studying the Icelandic approach. That means jailing banksters and nationalizing the central bank. So maybe they aren’t pulling all the strings. The Greece prime minister tries to uphold his commitments to the people. Something the cabalistic/atonistic rulers might not have contemplated to be possible.
      And they plan things but they adjust their plans to the situation as often as needed.

  • GetReal4U2

    Wow…I had no Idea that Germany was in this type of trouble…the house of cards starts to collapse…

    • Horiboyable .

      Yea, over here in Europe nobody wants to talk about the elephant in the room that is painted red and has bells and flashing lights all over it.
      Pretend and extend is the “official” policy until they find an event (normally war) to blame it on. So many of our politicians these days are sick SOBS who are only out for themselves.

  • Prepper1

    Buckle up boys and girls let the fireworks begin ! Make sure your preps are ready folks

    • VigilanteCaregiver


    • Mikesocha

      wouldnt it be fantastic if it happened on 4th of july?

  • dipdunkstinkstankstunk

    As long as man thinks he can fix it, the collapse will slowly churn. The day will come when man cannot fix it with bailouts, printing and kicking down the road. Then man will look for other solutions. Man is dangerous. We don’t like pain and suffering and the simple solution may turn out to look great in the beginning but end up like gravel in the mouth after awhile.

  • hitmewithyorythemstick

    Everything is beautiful in it’s own way….. la la la la laaaaaa la

    • df NJ

      Mediocrity is boring.

  • gethipgetaclueitsmellslikepoo

    you ever talk to a business owner before they close up shop? Ask them how it’s going they respond how great it is going blah blah blah.then a few days later the store is closed and the owner is gone-no real warnings, well hold on cause it could happen this way for many people when this deal falls apart.

  • hillbillyohnilly

    the whole fricking thing ans coming down, the wheels are a comin off boys grab yo gun and head fer the hills that is not californicationica load the ole jaloppy and git granma on toppy it’s gonna be a show stoppy

    • cuzfromanotherduzzin

      Is thinkin soms peepl ar alsredy coallspin in tho minds

      • boaintdiddlysquat

        befo long yol b sinin a difrent song it wil go hip hop slipprty slop git yosef down to da cande shop

      • pissedlizard كافر ‏

        Fo reels. And just wait till they can’t get something purple to drink.

        • whiteypretendstobeblack

          wat dey do win dey’s robs all da likker stos and theys no mo’s? den they’s a comin afta yo’s cuuuuuuuuuz ha ha ha ha hahaha

          • humpit

            oh no they won’t. I’m a big bad prepper ready to taker them on with my big guns wooo wooo wooo come on down and try it. I’m macho, I mean nacho prepper

          • Mike Smithy

            I see you have an advanced degree in African-American studies from an institution of lower learning. Is it hard to learn Ebonics?

  • rademtandem

    i once had dog named sue

    • pissedlizard كافر ‏

      I had a guppy named Obama. What else would I call a black, useless brainless slimy thing? Also had a black boxer pup with one ear clipped. Named him Evander

      • notaracistlikethatwhitewoman

        had a mammy named obammy too she luked jus lik ant jah mammy

  • Undecider

    The first step in resolution for Greece is for the people to kick out their “leadership.” That would be the same people who keep voting to sustain and increase the debt. Gone are the days for a referendum or “vote of confidence.” The “leaders” need to be dragged out. Then the Greeks can vote in a new government which will do as Iceland did.

    • jox

      I’m afraid you don’t follow the affairs in Greece very closely. They’ve already done that: change their government , for a government that protect the interests of their people above those of their creditors.

      • df NJ

        The people of Greece need to leave the European Union, print their own currency, and use the money to run their own economy in isolation from the rest of the world. Fish, herd goats, take care of the young and old people. It’s not that hard. Hard working men and woman should be able to create enough fruits from their labors to live. How did the world get so out of whack that we all believe banking is the only answer?

        • Gay Veteran

          plus they can rent out some ports to the Russians and Chinese

      • John Byde

        Exactly. And they are doing exactly what many ordinary people in Europe have been waiting for for years: telling the bully boys in Brussels and Berlin to stick it.

    • Mike Smithy

      As I see it, the problems of Greece is multi-faceted. Greece got into debt by living beyond their means for far too long. Banksters, much like drug dealers were all to willing to oblige with easy loans. In time, it became a way of life just like junkies rolling out of bed in the morning and taking a hit from the crack pipe. Before long the interest payments to the drug dealer consumed the lion share of the junkies income which would ordinarily go to housing, food, clothing, investments etc. Now the junkie (Greece), is incensed not by it’s own behavior but outraged that the dealer (banksters) want his money. The only difference between Greece and the USA is that Greece has a head start on us.

      • Gay Veteran

        and the banksters lent money to Greece knowing they couldn’t pay it back

        • Annoyingandlovingit

          Lusting for banksters power money and access to little boys, pedo?

          • Gay Veteran

            thanks for contributing to the discussion about the European financial crisis

  • VigilanteCaregiver

    Let it happen. The tribulations are already here – they began over a century ago. Armageddon, Gog and Magog; all are fixed points in time. Just let it happen. Get it over with.

  • Horiboyable .

    Capitalism means free enterprise, sovereignty of the consumers in economic matters, and sovereignty of the voters in political matters. Socialism means full government control of every sphere of the individual’s life and the unrestricted supremacy of the government in its capacity as central board of production management. There is no compromise possible between these two systems. Contrary to a popular fallacy there is no middle way, no third system possible as a pattern of a permanent social order. The citizens must choose between capitalism and socialism.

    We are ALL witnessing the collapse of the USA

    • Kim k

      Are we witnessing the collapse?
      Seems like tptb really can manipulate everything they want.
      Years or issues..10 yr bonds.derivitaves.oil.greece,etcetcetc.
      Tptb can perform fraud to get out of any corner. I wish I was wrong. I wud love a reset.

      • df NJ

        The Fed can keeping buying bonds through foreign interests as long as they have ink to print money. The water boarding economy will probably continue for another 10 years.

      • flushshit

        No no no no no you’re not witnessing the collapse. You’re witnessing TPP, Toilet Paper Production. Haven’t you heard about the increases needed?

    • df NJ

      I am pretty sure corporations and NOT government is in complete control. If you are arguing that corporations ARE the government of the United States then I agree with you.

      “Fascism should more properly be called corporatism, since it is the merger of state and corporate power.” Benito Mussolini

      I know many people passionately believe capitalism and free enterprise is the answer to all our problems. The problem is we absolutely do NOT have any free markets in this country. Everything is a pay-to-play market where competition is destroyed by legislation.

      The problems with our country are not rocket science. The lobbyists force the politicians to pass laws creating cartels and monopolies in exchange for campaign financing.

      My problem is the word “socialism”. Just don’t use it. It’s a blasphemy against reality. We are as about as far from socialism as you can get and still have a government currency with any shred of value. Google “Inequality in America” and look at the graph for the “dreaded socialism”. Your perception that we have too much socialism in this country could NOT be further from the actual reality.

      There are laws that enslave men. There are laws that set them free. Our government has failed us.

      • Mike Smithy

        It’s an unholy alliance of Corporate Fascism and Big Government Socialism. It is a symbiotic relationship where one hand washes the other.

    • sharonsj

      If you think consumers are sovereign in the economy and politics, have I got a bridge for you to buy…. And we don’t have free enterprise either.

      If you would stop listening to Fox and Rush and actually read some books, you’d know we do not have Socialism. We have corporate Fascism.

      Finally, Greece and the rest of the world is on the brink of collapse because the international financial system was bailed out with our money and then the Fed gave them trillions more. So the banks and Wall Street are making out like bandits but the bills are being handed to the taxpayers. Greece is falling apart because their politicians agreed to bail out their banks with borrowed money which the taxpayers and not the banks have to repay. The repayment is destroying the Greek economy and people because the lenders required imposed austerity–the result is 30% unemployment, a destroyed health system, and people starving. Our media never explained any of this nor did they cover the tens of thousands of Greeks who daily tried to burn down their own government….

      • Malcolm Reynolds

        If you would stop listening to Fox and Rush and actually read some books, you’d know we do not have Socialism.
        Of course we have socialism too. The US redistributes more wealth than we spend on the military. Just cuz we have fascism (you’re spot on about that), doesn’t mean we cant have socialism too.

    • Peter

      I find if funny, how
      there is still intelligent people out there, that think in terms of
      left right. When in fact its always been about divide and concur.
      Capitalism died a hundred years ago, what we have now can only be
      described as fascist corporatism. Deals made behind closed doors,
      like the TPP, are written by the corporations. Made illegal to
      release any info on it, punishable by prison. Fast tracked through
      the congress by the republicans.
      People are so ignorantly
      brainwashed they no longer understand what capitalism is. In the past
      before we had income tax. We would tax countries like china (this
      paid for or roads and schools). They use their spy’s to steal our
      intellectual property, slave labor, manipulate their currency, and
      pollute where ever they want. It was said that it would be economic
      suicide to compete with them, for capitalism to operate it needs
      rules, and these rules cannot favor one over the other. Today the
      useful idiots think in terms of this guy is better then the other.
      This is why this corrupt system continues indefinitely.

  • Rukander

    We need call the master Alan Greenspan.

    • slickwillygotsalongphillysteak

      yup the master baiter

      • df NJ

        The maestro just never imagined that bankers would act in such a way that would be so counter to the company’s they represented.

        “You had the authority to prevent irresponsible lending practices that led to the subprime mortgage crisis. You were advised to do so by many others,” said Representative Henry A. Waxman of California, chairman of the committee. “Do you feel that your ideology pushed you to make decisions that you wish you had not made?”

        Mr. Greenspan conceded: “Yes, I’ve found a flaw. I don’t know how significant or permanent it is. But I’ve been very distressed by that fact.”

        If Greenspan ran a casino he would not have any cameras because he would claim government has no role in the economy.

  • cuckooclocksarechimingcuz

    cuckoo cuckoo cuckoo they aint seen nothing yet i;m from the slum and aint no bum got a load of anti social passive aggressiveness in my head that never really went away from back in the day running round with my possie down in jersey, it;s all ready there and good to go at the drop of a hat these guys will wonder where its at im a random dude and can be very rude so get ready freddy its time to move

    • df NJ

      Don’t worry, more riots in the USA are coming.

  • getreal

    Havnt ya’ll heard?! it’s already collapsed. where have u been? it’s over, done with with and u will see people acting that way very soon. you know the famous quote, nothing to lose so they lose it. it’s lost already the end is here

    • df NJ

      It’s going really well for the CEOs. At least we have that to be thankful for.

  • df NJ

    How is it that Iceland is not like Greece?

    “You may have heard about Iceland’s toppling economy back in 2008. As one of the hardest-hit countries at the time, Iceland’s heavily criticized method to escape veritable economic demise actually did the trick.

    Faced with the possibility of financial failure, Iceland had to think on its feet. Instead of bailing out banks USA-style, the country forgave mortgage debt for the population – and completely started over from square one.

    A country with a small population of roughly 320,000 citizens, Iceland‘s entire banking structure “systemically failed” in the early days of the 2008 recession. Despite the fact that Iceland is still on the road to recovery, the country ranks high as a politically and economically stable nation. Their success over the last few years has been largely under-reported, and the story behind it is quite fascinating.”

  • df NJ

    Our water boarding economy will probably continue for at least another 10 years. As long as the Fed can keep buying US Treasuries through foreign interests nothing bad is going to happen.

    “Is the Fed “tapering”? Did the Fed really cut its bond purchases during the three month period November 2013 through January 2014? Apparently not if foreign holders of Treasuries are unloading them.

    From November 2013 through January 2014 Belgium with a GDP of $480 billion purchased $141.2 billion of US Treasury bonds. Somehow Belgium came up with enough money to allocate during a 3-month period 29 percent of its annual GDP to the purchase of US Treasury bonds.

    Certainly Belgium did not have a budget surplus of $141.2 billion. Was Belgium running a trade surplus during a 3-month period equal to 29 percent of Belgium GDP?

    No, Belgium’s trade and current accounts are in deficit.

    Did Belgium’s central bank print $141.2 billion worth of euros in order to make the purchase?

    No, Belgium is a member of the euro system, and its central bank cannot increase the money supply.

    So where did the $141.2 billion come from?

    There is only one source. The money came from the US Federal Reserve, and the purchase was laundered through Belgium in order to hide the fact that actual Federal Reserve bond purchases during November 2013 through January 2014 were $112 billion per month.”

  • JailBanksters

    Ja, und ve vill crush zem like bugz

    • df NJ

      Es ist unser natürliches Recht, dass die starke Zerstörung der Schwachen, Seig Heil!

      • JailBanksters

        It’s much funnier when a German-Jew Actor pretending to be an American sounding like a German does it.

        • df NJ


  • Patriot Alice

    Nothing terrible will happen, so put the popcorn away. Greece will get bailed out in one form or another, because it is the lesser of the evils pending this event. Greece won’t leave the Euro either, mark my words on this…Sorry to burst you bubble, doomers and gloomers..

    • df NJ

      The Germans are just waiting for our Fed to do it.

    • chilller

      Oh really…You must be the Alice that also went down the rabbit hole. If Greece gets away with strong arming the troika…the rest of the PIGS will expect the same and Germany will be in dire straits trying to fend them all off.
      Step out of Wonderland Alice….

  • Preparequickly

    Feel so bad to the ones that dont listen and havent been prepping.

    • jakartaman

      Not me stupidity has and should have consequences!

  • chriscas

    Gee, I thought CNBC said everything was OK! Maybe their ANALysts have been hanging out with Brian WIlliams too much. I know, it’s like with these transgendered, transracial, transfat (?) folks. If I feel prosperous, even if I’m in debt past my eyeballs, well then I must be prosperous! Sounds good to me! Iceberg up ahead?? Nonsense! Let’s all go down to the Titanic’s dining room and have a nice, juicy steak! I hear they have a great band! Kyrie Eleison, Christe Eleison. Lord, Have Mercy, Christ, Have Mercy..”Do not consider what we truly deserve…”

  • DB200

    And what will the Greek army do?

    • df NJ

      And you thought the 300 were heroic!

    • Pete

      Greek army? What’s that, an oxymoron?

  • DJohn1

    Italy, Spain, Portugal, Greece are all in the same boat!
    We call them P.I.G.S. for short.
    None of these countries are capable of paying their own way right now.
    I suggest that the Euro will survive by kicking them out.
    When Europe kicks out the P.I.G.S. then the entire banking system will stabilize.
    The alternative is a devaluation of the entire Euro.
    The factor I would watch is something totally unrelated to the crash.
    I would look at how much money people have freed up that they can spend on retail goods. The idea is that discretionary income controls the economy and without it the retailers starve.
    Without the cash to spend, people often do not spend money. That means retailers lose big time.
    That is occurring all over the world.
    Just like the banking system and foreclosures. When 2 or more properties are in foreclosure on any one street in an average plat of homes, then there is a serious problem with the way we are handling foreclosured homes.
    People walk away. Banks are lost because they are holding the property and no making money on it. Only a certain number of foreclosed homes can be out there before the bank goes under.
    Iceland pinned it down when they forgave all the mortgages if that is true. Our banks are all ready nationalized whether we know it or not.
    The Fed matches funds with funds held by a bank. So they are loaning our money back to us through a third party, the bank. That is our money they are loaning us.
    Homes are one of the most stupid loans that anyone could buy. And I have one. Loans start out approximately at 95% interest and 5% principle. That means that the bank collects the money back up front.
    You can literally pay back a loan at twice the rate by simply putting extra principle payments each month. Some of which could be less than $50 because of this 95/5 rate of repayment of a loan.
    If you bought a cheap house at $40,000, you might pay back the bank to the tune of $120,000.
    They will tell you this under truth in lending at closing.
    So yes, the entire system is now coming down because of high unemployment and people not able to pay back the loans.
    I wonder if that is happening also in Greece.

    • df NJ

      I agree. The people are totally to blame. The bankers are angels who only deserve our reverence, love, and respect. The people are sinners and need to be punished for their sins.

  • redzonehunter

    the deutsche bank if im correct is in control of fidelity ,which has my 401k and probably millions of other middleclas workers here in america.were screwed!

  • Patriot One

    Chill Michael the ECB just increased the emergency loan by over $2 Billion so they will have the money to make the payment. I mean they couldn’t pay a $320 million euro payment last week which means they are just saving up for the big payment at the end of June. After all they have to make all those social pensions payments. We should all feel pay a little more. Well not me, my pockets are empty. Oh go ahead just print a little more and we will talk about it again next month.

  • CharlesH

    If you just go with the simple mathematics of this whole thing – it is IMPOSSIBLE for Greece to ever pay back every cent they owe. They don’t have the sources of income in the amounts needed to both satisfy their creditors and sustain their own economy. To be given ANOTHER loan to even make their next payment on the money owed is ludicrous on it’s face!! Greece seriously needs to default, declare themselves insolvent and exit the EU (plus exit NATO if they’re smart). They’ll survive by hook or crook and of course there will be a lot of pain – but the European Union doesn’t give a sh** about Greece – it’s all about the all mighty euro. I can clearly see Greece turning to Russia and soon.

    • Not Sure

      This is what MISH posted in one of his articles on Greece’s best scenario options:

      “Best Case Scenario

      1. Greece defaults.

      2. Greece sheds €330 billion worth of debt.

      3. Greece opens up trade with Russia, killing EU sanctions once and for all (and exposing the stupidity of the unanimous nature of EU rules in the process).

      4. Greece threatens to yank US access to the US military base in Crete.

      5. Russia builds pipeline through Greece. In turn, Greece collects shipment and storage fees.

      6. Russia provides interim funding for Greece until Greece runs a primary account surplus.

      7. The interim agreement from Russia requires Greece to initiate some market reforms that will pay big dividends down the road.

      8. Greece reforms and does very well in a relatively short time frame.

      9. Italy, Spain, Portugal, get some clever thoughts of their own.”

  • avacris

    I will be visiting Greece later this year. What will this mean to me as a tourist visiting the country?

    • Evil_shadow

      if they’ll stick to euro not much, but if they’ll return to all depends on how fast they would set up stabile price for their monetary currency. In worst case scenario you could see wildly fluctutation of prices (esp in drachmas) everywhere.You should take this consideration and prepare to this possibility. Cheers.

  • Nguyễn Hoàng Long

    I’m curious about what’s gonna happen by the end of this year, tough time maybe ?

  • Antonio Ossa


  • MacFly1

    Definitely starvation but it would have happened anyway.

  • MacFly1

    Once Greece defaults, Mexico is next, leading to a U.S. default within one month of Mexico going down.

    • KnowNotTheTruth!

      But if Greece falls, would the EU go with it and this would cause even a greater artificial need for dollars? For a while!

      • Evil_shadow

        It would, but in long term id would drive price of US dollar to high and would force FED reserves to print even more dollars.You know that you cant print endless money without repercussion, right?

  • Evil_shadow

    by 2050…You do know that they (“greenies” in UN) want to put heavy taxes on all non reneavalable energy sources all around the planet? so how they expect that we would be able to shift from coal/oil based system toward more sustainable ? You cant produce enough electricity for heavy mining operations through solar/wind only.So what’s left? nuclear or oil/coal/natural gas.And that’s not enough for them i’d say.

  • Dan Aldrich

    I’ve said this many times. THIS is what happens when you spend MORE than you EARN (bring in, in the form of income (taxes for countries) take home pay for individuals. Economics 101.

  • Lazarovic

    I’m gonna buy a 10 lbs. bag of rice and beans.

  • T.

    “I read a few books too. In fact I have a few REAL advanced degrees,”
    They have done YOU any good,

    • pissedlizard كافر ‏

      They sure have. I have a great job making a great living. And what’s your point? You upset that mommy wants you out of the basement? Get a frigging life.

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