Euro Meltdown
 

For the most part, this story is being ignored. The PIIGS are Portugal, Italy, Iceland, Greece, and Spain (technically, Iceland is outside the Euro).

For all practical purposes, the Greeks are in default. They were doing what early 2000 Republicans were also doing in America. Playing spread sheet games and government welfare to enrich the richest while making all others *feel* times were good.

The Greek economy is maybe equivalent in size to a Philadelphia economy. Harm would be equivalent to a major American city going into default. Not just the government. Most businesses in Philly.

NYC was there when (according the headlines in the Daily News), "Ford to NYC - Drop Dead". As a result, NYC eliminated bean counters. Installed fiscally responsible management including a ruthless oversight board. And literally forced little NYC citizens to pay for the rich. Why did the NY Yankees get a new (refurbished) stadium? The little people paid for it four and more years later. That is how economics works.

Today we will screw all Americans because, for example, wacko extremists said Saddam had WMDs. As is always true in economics, the bills come due this many years later.

The Greeks and other European politicians remain in denial. Greeks must be punished severely for money games played by their rich years and decades ago. That is how economics work. Economics takes revenge on the innocent years later. Markets understand this. Greece will and should default. But due to the Euro, all other Euro countries will also pay.

Rather than admit the obvious, the European Central bank just bought up Greek and Italian government debt. Another way to force all EU citizens to pay for the most rich and most irresponsible finance people (the people who get most tax cuts while creating the least new jobs). Another reason finance people can not be over regulated. Even demonstrates why professional money managers (ie stock brokers) routinely underperform the market while the public remains in denial.

Berlusconi of Italy is another example of a bean counter (communist) mentality. Berlusconi has an advantage that even Murdoch only wishes he had. Berlusconi owns almost all media sources in Italy. When Murdoch started getting a hold in Italy, Berlusconi took notice and subverted Murdoch’s profits and growth. Berlusconi can manipulate Italian opinion almost at will. As a result, Italy's economics are following the Greeks into default. When will Italians realize they are being manipulated like a dumb dog or a wacko extremist? When economics takes revenge so many years and decades later.

got the latest edition of the Economist eh?

Dick.

I thought it was Tom.

I don't know, Hairy.

Deutche Welle.

I would suggest Economics for Dummies would be more to the level of the classic viewer.

Thank you, and douche well to you, too.:p:

Never read that before. Some good stuff on there.

Link for others interested.

I don't know whether to snicker or groan, but I like it. :p:

Psst. The second I in PIIGS is Ireland, not Iceland.

You can also be politically incorrect and call them the GIPSIs.

And yes, they are screwed, and all they've done lately is kick the can down the road a bit. As has the US. Lemme go stock up on some more tinned food.

From The Economist of 16 Jul 2011 (which also correctly identifies Ireland - not Iceland):