“He that goes a-borrowing goes a-sorrowing.”- Poor Richard’s Almanac. When you go in the hole, year after year, paying out more than you are taking in, disaster is the only possible result.
That goes double for the U.S., since we have an inert clown and abject cypher in the WH!
What could be worse.... I am almost afraid to answer myself.
On NPR this morning, they described the greek thing as keeping it going in the hope of someone coming up with some as yet undiscovered solution to this mess that could fix the situation.
IOW, the situation is still them jumping off a 100 story building and now they are all the way to the 3rd floor, and they shout through an open window to the guy inside, “so far, so good!”.
But the pavement is very close now and they are still accelerating. It will not be pretty. For any of us.
http://www.indexmundi.com/g/g.aspx?c=gr&v=24
Like a lot of the EU, since they are losing population when a married Greek couple has only one child on average, they imported workers.
Unfortunately then many of those workers quickly figured out socialism and went on the dole.
Yes-sir, this can just got kicked a few feet down the road.
Instead of celebrating, most Greeks seemed resigned to a very hard future.”
Pfft.
Meaning someone might have to work?
—We are watching a slow-motion financial train wreck that is absolutely unprecedented happen right in front of our eyes and our politicians are powerless to stop it. —
This.
However, many of us that predicted this did not realize just how much they could slow down time. I expected to be here last fall. I don’t think it will last beyond this year, however. Heck, I think our election cycle will be one of the catalysts that move it closer into real time.
Kicking the can down the road some more.
Spain is almost certainly going to need a huge bailout.
Italy is almost certainly going to need a huge bailout.
Ireland and Portugal look like they are going to need more money.
France is increasingly looking vulnerable, and Francois Hollande appears to have no real solutions up his sleeve.
As Margaret Thatcher said, more or less, Socialism works until you run out of other people's money. Perhaps the USA will step up and spend a few trillion to prop them up until after the election. Why budget when you can borrow, print, and blame Bush and the greedy rich?
Of course the rich are already paying their "fair" share, but it is a moving target.
“On Monday we are likely to see financial markets across the globe in celebration mode.”
Not the American market, investors have seen the light. The bailout money isn’t even going to Greece, it’s going to the broken Euro banks than loaned Greece money. The bailouts are paying interest (not principal) on money already spent. The debt remains and more interest must be paid again soon.
And...22% of the latest bailout comes from Italy. That’s called contagion. Think of the old game called musical chairs.
Greece is getting no lasting benefit, and the broken banks are only being kept open temporarily as Greece can’t make its payments.
At some point, political pressure will stop the waste of the bailouts and the piper will be standing there with his hand out. Then the real violence will begin.
This should be engraved over everyone's threshhold. Anybody who does not believe this is either not paying attention or is in deep denial.