Posted on 12/17/2011 6:26:20 AM PST by Kaslin
Devemo-lo tudo para nossos amigos Cloward e Piven.
I’m taken to being more amused than shocked by the hair-on-fire antics of shorts like Denninger and this guy, they’ve been talking their books and ended up being regarded as sages for doing it. Strange times, strange bedfellows. It also helped that they were right. We’re in a big mess, anything could happen and most potential outcomes are negative. The people as a whole still do not understand the ramifications of what has gone down, which was the biggest fraud in the history of the world, imho. So, they go a-huntin’ for somebody, anybody, who sounds as if he might have some notion as to what the heck is going on. He’s just riding it to prominence. Can’t blame him, opportunity is severely limited at present.
If they want to borrow as much as Ghana, sure. No one is going to loan them any significant amount of cash if they don’t repay it.
LOL!!!
Oh Lordy, do what he say! Do what he say!
Big 3 French bank balance sheets are 3 times the size of France’s GDP. Leveraged 30 to 1.
That would be like 3 big American banks have $45 trillion balance sheets.
Those French banks are French toast.
Unbelievable.
Portugal, Italy, Greece, everybody, deal. It ain’t goin’ away.
No mo’ money.
Immediately, Portugal will only be able to spend what they take in. They will have to immediately choose between paying welfare and pensions, and even if they terminate welfare the pensions will take a haircut.
The result of terminating welfare will be a tsunami of underclass people going into the rest of Europe and hastening the collapse of the remaining welfare states.
Socialists are truly economically illiterate. That move by Portugal would primarily nuke THEIR OWN economy!
It was gov’t largess that kept their economies afloat for so long, but now that is gone. Only a radically more free market can rebuild these economies.
I don't see that happening - these fools are still building (& tilting at) windmills, so I expect Europe to further decline economically.
And Obama has the US on exactly the same failed path.
14 Straight Quarters Of Falling Home Prices May Be More Than Spanish Banks Can Survive
This is the true face of socialism, infantilism.
A few centuries ago, if a country did not pay their debts, they could expect war ships to show up on their shores to make collections.
It worked great, incompetent governments were absorbed by more efficient governments.
Hasn't this been going on in Africa for 6 decades? Somebody always comes along to "loan" them more money.
This time I think no one will be around to loan them anything after the nuclear option, especially if it happens worldwide.
They don’t actually have any military, but they do have this old lady that they’ll send out to give you a stern look.
You are right. Banks encouraged irresponsible levels of debt from individuals, private groups and enterprise and governments.
When they hand out loans without considering the ability to pay back the loan, they have taken an irresponsible risk and should be the ones to pay for it in the end. If banksters were realistic, they would not loan money to socialist governments. They would not have buckled under Clinton’s demand that they give loans to poor people with no money in the name of race. The ending of these irresponsible and dishonest actions is always the same. The one that takes stupid risk, the banks, should pay the outcome and not pass it off to innocent others.
Hold it, men. He’s not bluffing.
If they default, does that mean that the lender could then collect the collateral?
And considering that these loans are to national governments... wouldn’t that make the nation in question the collateral?
I doubt there is any collateral. The creditors probably don’t even have the right to levy on the government’s assets. They certainly would not in the US. The only way the debt could be repaid is if Congress so orders.
When Portugal considers default as a weapon I recall the famous line in “Blazing Saddles”....
“Anyone move, I shoot the N____r!”
(”I think he means it.”)
Mexico defaulted, and France invaded. I don’t think they ever recovered their principle, but the French Foreign Legion got a few souvenirs.
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