The Canary in the Cradle of Western Civilization

[marmar]

from the NY Times:



As Greek Bond Rates Soar, the Specter of Bankruptcy Looms

By LANDON THOMAS Jr.
Published: April 8, 2010


LONDON — As interest rates on Greek debt spiral upward again, the question facing Europe is no longer whether Athens has the political will to cut spending and raise taxes to curb its gaping budget deficit, but whether Greece will run out of money before it gets the chance to do so.

With the rate on 10-year Greek bonds reaching as high as 7.5 percent on Thursday, up from 6.5 just three days ago, the cost of insuring against a Greek default hit a record high.

The message from the market could not be clearer: artfully worded communiqués from Brussels will no longer suffice. To avoid bankruptcy, analysts said, Greece needs a bailout from Europe, and fast.

“This is no longer about liquidity; it’s a solvency issue,” said Stephen Jen, a former economist at the International Monetary Fund who is now a strategist at BlueGold Capital Management in London. .........(more)

The complete piece is at: http://www.nytimes.com/2010/04/09/business/global/09drachma.html?hp

[Ozymanithrax]

1. So Greece is too big to fail? n/t

[RC]

2. The real domino theory in reality.

Unless we get some reality in our own economic theories, we are still in danger of collapsing.
Yes, this can be blamed on the bu$h administration, even when they been working for this for over 40 years.

This country is great on diddling with the symptoms, lousy on correcting the root cause. Get our manufacturing jobs back in this country, stop out sourcing jobs. Stop the tax welfare of bis business. There is no reason why any big business get more back in tax refunds than the own in taxes.