Greece going down in flames NOW! What to do ...
by Mike Larson
If anyone tells you he’s not terrified at what’s happening right now in Europe, he doesn’t even begin to understand the problem.
Just look at the news since Friday:
>> German banker quits ECB in disgust: On Friday, a German member of the European Central Bank suddenly resigned — a shocking move perceived by most analysts to be an indication of intense German anger at the high cost of attempts to save the PIIGS and stabilize the European economy.
>> Greek bailout may be canceled: Also late last week, Germany’s finance minister, Wolfgang Schäuble, said Greece has violated the promises it made in return for its first bailout and threatened that its next bailout may be withheld.
>> Greek economy cratering: Yesterday, Greece’s finance minister announced that in 2011, his nation’s economy will NOT shrink the 3.8% previously reported — it will shrink 5.3%!
That means the government tax revenues — and its ability to service its massive debts — will plunge much faster than previously thought.
>> French and German banks in grave danger: On Sunday, French government officials braced for expected ratings downgrades on France’s three largest banks, BNP Paribas, Société Générale and Crédit Agricole. All told, French banks recently said they hold $13.4 billion in Greek debt.
Plus, over the weekend, German Chancellor Angela Merkel’s government continued debating how to save German banks, which recently reported that they held $14.1 billion in Greek debt.
>> Greek 2-year bonds paying 60% yields: For the first time in history, yields on Greek two-year notes soared above 60% today. Insurance against a Greek default is now priced at its highest point in history, more than three times the cost of insurance against a Portuguese default.
>> The end is near: Any way you look at it, Greece’s demise is imminent. Later this month, German lawmakers will vote on whether or not to approve the next Greek aid package. In a recent poll, a whopping 53% of Germans oppose further aid to Greece.
Plus, French Budget Minister Valerie Pecresse has also threatened to halt her country’s bailouts to Greece.
There’s no guarantee that either France or Germany will wait even one more day — let alone for a week or two — to demand that Greece leave the European Union.
When that happens, you’re going to see an explosion of stock market volatility and surges in precious metals that will make everything else we’ve seen so far in this crisis PALE by comparison!
And remember: Greece is only the first of the five PIIGS nations to approach default. Ireland, Portugal, Italy and Spain are also speeding toward failure.
Needless to say, these fiascos can only have a catastrophic impact on the European Union ... the euro and the global economy as a whole.
by Mike Larson
If anyone tells you he’s not terrified at what’s happening right now in Europe, he doesn’t even begin to understand the problem.
Just look at the news since Friday:
>> German banker quits ECB in disgust: On Friday, a German member of the European Central Bank suddenly resigned — a shocking move perceived by most analysts to be an indication of intense German anger at the high cost of attempts to save the PIIGS and stabilize the European economy.
>> Greek bailout may be canceled: Also late last week, Germany’s finance minister, Wolfgang Schäuble, said Greece has violated the promises it made in return for its first bailout and threatened that its next bailout may be withheld.
>> Greek economy cratering: Yesterday, Greece’s finance minister announced that in 2011, his nation’s economy will NOT shrink the 3.8% previously reported — it will shrink 5.3%!
That means the government tax revenues — and its ability to service its massive debts — will plunge much faster than previously thought.
>> French and German banks in grave danger: On Sunday, French government officials braced for expected ratings downgrades on France’s three largest banks, BNP Paribas, Société Générale and Crédit Agricole. All told, French banks recently said they hold $13.4 billion in Greek debt.
Plus, over the weekend, German Chancellor Angela Merkel’s government continued debating how to save German banks, which recently reported that they held $14.1 billion in Greek debt.
>> Greek 2-year bonds paying 60% yields: For the first time in history, yields on Greek two-year notes soared above 60% today. Insurance against a Greek default is now priced at its highest point in history, more than three times the cost of insurance against a Portuguese default.
>> The end is near: Any way you look at it, Greece’s demise is imminent. Later this month, German lawmakers will vote on whether or not to approve the next Greek aid package. In a recent poll, a whopping 53% of Germans oppose further aid to Greece.
Plus, French Budget Minister Valerie Pecresse has also threatened to halt her country’s bailouts to Greece.
There’s no guarantee that either France or Germany will wait even one more day — let alone for a week or two — to demand that Greece leave the European Union.
When that happens, you’re going to see an explosion of stock market volatility and surges in precious metals that will make everything else we’ve seen so far in this crisis PALE by comparison!
And remember: Greece is only the first of the five PIIGS nations to approach default. Ireland, Portugal, Italy and Spain are also speeding toward failure.
Needless to say, these fiascos can only have a catastrophic impact on the European Union ... the euro and the global economy as a whole.
