Posted on 05/09/2010 5:11:27 PM PDT by Bigtigermike
At the end of last week, the US looked hard at Greece and was scared. So tiny an economy should not be bringing all of Europe low and even threatening to explode the euro, but it is. What started as a US financial crisis plunged Europe into recession; was Europe about to return the compliment? What, Americans began to wonder, did Europe’s problems tell them about their own?
The cause of the present turmoil, Greek public debt, has aroused fears of a wider sovereign-debt crisis and heightened concern about US government borrowing. More immediately, investors are asking, what if the European Union keeps making a hash of the problem? Will there be a second European banking crisis, and would it infect the US financial system? Even if the answer is no, the US recovery is still fragile. The economy would not be immune to another slump in EU demand.
(Excerpt) Read more at ft.com ...
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If you have kids,,,, well,,, I'm sorry.
Worries about other indebted nations have helped the sale of American treasuries, which are less risky. But this can’t last long. At best, it’s bought us some time.
I don’t give a tinkers damn about Greece. You can let them riot. I just can’t care. We need to cut spending and cut taxes here or there will be riots when the inflation consumes us.
“If you don’t already know that all socialist countries will fail, your stupid. The usa is headed that way.”
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Yes, and it was a hoot when the IMF told Greece they had to PRIVATIZE their healthcare system (get rid of their socialized medicine) due to runaway costs — in order to qualify for IMF assistance. OK, Obama, check on your king — your move, now what ??
One big difference.
Greece is a non-entity in the grand scheme of world affair’s. We are the most powerful country in the world. We can force the world to take our crap in a way that Greece can’t
He is saying what is happening to Greece will soon hit our doors and shores.....
Did you know your tax dollars were headed that way to bail out Greece through the IMF, thank you Obama? (sorry to ruin your day)
“What started as a US financial crisis plunged Europe into recession...”
That is a gross over-simplification. The whole world was in financial crisis. It was simply the US market system that first shouted, “The Emporer has no clothes!”
A market system will always lead socialist politician-controlled systems. They lead on the way up, and they lead on the way down, and the reason is simply that market systems are much better than politicians at figuring out which direction the prevailing economic wind is coming from and how strong it is, so they figure it out first, and the socialist economies follow once they see the writing on the wall. It has nothing to do with a spreading contagion. It’s simply the efficiency with which various economic systems decode economic realities. The market-oriented systems do it faster.
The IMF's resources come mainly from the quotas that countries deposit when they join the IMF. Quotas broadly reflect the size of each member's economy: the larger a country's economy in terms of output, and the larger and more variable its trade, the larger its quota tends to be. For example, the United States, the world's largest economy, has the largest quota in the IMF
If you want something to worry about, take a look at any strip mall, industrial zones or indoor malls. I’d guess there is about a 30% vacancy rate. We are on the harry edge of a collapsing dollar. I don’t want to underestimate the potential of the American economy, but I can not see any way out at this point.
Black Monday looms.
Yes, there is hope.... if the consertives can get in and cut taxes and shrink government, all will be well. Can that happen with today's idiot voters??? maybe not.
Futures up sharply. I’m firmly positioned bearishly... who knows if this current facade of a ‘rescue’ will pass muster.
Sure, we may temporarily hold off the commies and the Islamofascists in 2010 and 2012 but demographics will sink us.
Went to the mall today. Wife wanted sneakers. Lady Foot Locker was closed. I went for a sandwich at Quiznos afterwards. That was closed. Unbelievable. WTH happened?
The pre market is soaring!!
We had a crash already,, but big brother, (with your money, taxes) stepped in and covered it up. Time will tell if big brother was pissing in the wind with your money or not.
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