June 2011

The cause of Greece’s economic troubles read like this;

Years of unrestrained spending, cheap lending and failure to implement financial reforms left Greece badly exposed when the global economic downturn struck. This whisked away a curtain of partly fiddled statistics to reveal debt levels and deficits that exceeded limits set by the eurozone.

As for Obama’s nation, the unrestrained spending has been going on for a few years in addition to the cheap lending. America has yet to implement any financial reforms and is exposed to any global economic downturn which in all likelihood, could begin with a Greece default. The dreaded contagion would run like wild fire through Europe and then ripple around the world.


Since my last post, the number of events which make it into the news, some of which are brought forth by Obama’s presidency and economic policies, are so numerous I can no longer comment on them all. As a result, I have to resort to just summarizing the news from various outlets. Sometimes, I will comment on them.

Monday, June 13, 2011

US Is in Even Worse Shape Financially Than Greece: Gross

Greece Gets Lowest Rating, S&P Sees Restructuring

Greek rating now worst in the world

Likely Default… USA in Even ‘Worse Shape Financially Than Greece’…

Eurozone ‘heads for break up’…

Illinois is so hard up for money that it’s studying the possibility of selling ads on state license plates.

REPORT: Taxpayers to foot ‘most’ of the bill for Michelle Obama’s coming fundraisers…

Tuesday, June 14, 2011

Nouriel Roubini issues ‘perfect storm’ warning for stocks

Why ObamaCare Is Losing in the Courts

Soros: Time working against euro solution…

Obama: If Debt Limit Not Raised, Financial Crisis Possible…

Sarkozy warns of soaring commodity prices…

Since stimulus passed, 1.9 M fewer Americans working…

Obama Heckled At Fundraiser In Miami

Obama fundraiser underwhelms

Democrats wrestle with how to end Weiner scandal

EDITORIAL: Holding Holder in contempt

Wednesday, June 15, 2011

PAPER: Global order fractures as US power declines…

Greece Crippled by Protests, Strike Over Austerity…
If Greece is to be saved, the only measures to be employed now will be cruel in terms of services cut and taxes added. Yet, when it comes down to enacting those measure designed to save themselves, they are rejected as being too cruel.

The lack of agreement [ on how private holders of Greek debt should share the cost of a new bailout for Athens worth an estimated 120 billion euros before a June 23-24 summit ] pushed the cost of insuring Greek debt against default to a new record high on Wednesday, while shares in Greek banks fell 7 percent on fears of political uncertainty.

The PASOK deputy who defected said he could not back the package.

“You have to be as cruel as a tiger to vote for these measures. I am not,” George Lianis said in a letter to Parliament Speaker Filippos Petsalnikos on Tuesday.

Another PASOK member said he would vote against it.


Greek PM To Form New Government Amid Riots

The resignation offer doesn’t really surprise me. However, I believe Greece is heading for a French style revolution with the demise of their gov’t being the overarching goal. With the current sentiment of its people, it doesn’t look like they have any appetite for any semblance of the status-quo, much like the sentiment in America, running away from anything Bush-like, ie. McCain-Palin, and rushing head-long toward anything that is the farthest away from classic gov’t. Look what we got as an example of that.

It looks to me like the Greece populace wants a default and to secede from the EU so they can “stick it” to the man, who they view as responsible for their plight. If this happens, the rate of inflation they will have to impose upon themselves with their new currency to pay for their debt burden will be astronomical.

They haven’t a clue.

I’m expecting marshal law and no elections for awhile fomenting the conditions for worse leadership.

Housing Crisis Now Worse Than Great Depression…

Study: Housing Collapse Steeper Than During Great Depression

Since stimulus passed, 1.9 M fewer Americans working…

REPORT: Gold headed for $5K an ounce…

Bernanke: Failure to raise debt ceiling could result in severe market disruption…

Santelli: Bond Market Trading Indicates Little Fear…

CHANGE: More physicians leaving private practices…

Desperate mother-of-three sells handwritten letter from Obama to avoid being evicted
“I need to see some results.”

June 16, 2011

Greek strikers hurl yoghurt and stones at Athens police

Greeks versus the world in Athens austerity protests

Greek PM To Form New Government Amid Riots
Unemployed economist Xenophon told Sky News: “I am deeply opposed to the cuts this government is trying to push through and we the People are determined to stop them.

“But violence has no place here whether it be from demonstrators or the police.”

A hotel employee who joined the demonstration told us he felt that change was “in the air.”

“I don’t see how the politicians can go on defending these cuts. Something has to change.”

Greece’s Socialist-led government is trying to save 6.5bn euros to meet the demands of an international bail-out by the EU and the International Monetary Fund.

It is both ironic and illuminating that an unemployed “economist” takes the position that less government (spending) is a bad thing. Despite his education and intellect, or lack thereof, this “economist” cannot see those policies are among the reasons for Greece’s economic demise.

This train wreck is only now starting to ignite. These conditions usually means it will get worse before it gets better and in this case, it has the potential to create more chaos throughout Europe and will test the Euro. The sentiment among the Greeks is such that I expect them to want to drop their participation in the EU and Euro so they can print (money) their way out of their debt on their own, but to do so means the level of inflation I already mentioned.

I’m waiting to see our Fed throw (our) money at the IMF to try an prevent disaster.

Greek riots, political chaos hammer markets

Global stocks were closing sharply lower as the events in Greece — which has the worst sovereign credit rating in the world — further destabilized markets. Major indexes had their biggest drop on Wednesday since June 1 and the euro slid more than 1 percent against the dollar.

The political maneuvering and violence on the streets of the Greek capital triggered a sell-off in global financial markets as investors worried that a default in Greece could hurt banks in other countries in a chain reaction experts predicted would be catastrophic. Yields on the country’s 10-year bonds reached new record highs, spiraling to 18.4 percent

Greek debt, political turmoil hits world stocks