You might think that Greece is all fixed now – that the banksters and bureaucrats have got it fixed up just swell. The MSM says so, right? The truth is that they haven’t. All they’ve done is patch a small leak…but the dam is still falling apart. From Bloomberg:
Italian banks slumped in Milan trading amid concern the European debt crisis may spread just as lenders face scrutiny from regulators over capital levels.
UniCredit SpA (UCG), Italy’s biggest bank, and Intesa Sanpaolo SpA (ISP), the second-largest, led lenders lower, tumbling as much as 8.9 percent and 7.2 percent respectively. Both stocks were briefly suspended after breaching limits on intraday swings. Italian 10-year bonds fell, increasing the additional yield investors demand to hold the securities instead of benchmark German bunds to the most since the euro was introduced in 1999.
“Contagion fears keep re-emerging as long as credible, lasting solutions in Greece are pending,” said Christian Weber, a Munich-based strategist at UniCredit…
The trouble is that there cannot be a “credible, lasting” solution to Greece’s debt except by default. There aren’t enough Greeks – not if they dedicated themselves selflessly for a generation – to pay off Greece’s debts. They must default and eventually they will. What the Ruling Class types are fearful of – and it is completely justified – is that a Greek default will trigger an eventual Spanish and Italian default. So, do everything you can to keep Greece afloat even if everyone in finance knows it is BS (even with all this saving Greece going on, Greek 10 year bonds are at 16.8%…the US ten year rate is 2.94%, to give you a comparison: people paying attention know that Greece will default). But Spain and Italy’s problems are just as fundamental as Greece’s – far too much debt to be repaid in any reasonable amount of time.
As I’ve said, we can’t stop the crash – it must and will happen. It is the only way out. What we have right now is a government and financial elite using every expedient they can in order to keep things afloat…long enough for another fat bonus check, or past the next election cycle…whatever. The bad news, for us, is that the longer they kick the can down the road, the worse the crash will be when it happens (essentially, we’re piling up more debt in order to sustain unpayable debt).
HAT TIP: Mish’s
Blogs For Victory 