Cut Your Losses

The supposed rescue of Greece is, I believe, a complete farce and it will be shown to be so. I don’t doubt for a second that there is a political solution in Bonn and Paris, but there is no way that the Greeks will maintain the austerity to actually pull it off.

The EU Forced, and that is all you can say, FORCED the “private” banks to accept 50 cents on the dollar on Greek bonds — the banks were willing to take 21% and the governments wanted 60% plus — but that is not the worst of it.

The REAL problem lays ahead with Italy, a much larger problem.

In fact, Italy is the third largest economy in the EU after Germany and France and with all of the angst over tiny Greece, the combination of Italy and Spain is several magnitudes larger…and remember this is the THIRD rescue just of Greece!

That is not yet complete. The devil is in the details.

I still think the Euro is doomed. They keep putting band aids on, but they have broken bones and the band aids only mask the problem.

China, Japan and the US are being pulled slowly into the vortex of the Euro whirlpool, because all economies are so intertwined, but if something is absolutely inevitable it is best to let it happen before it bleeds you to deat and then dies anyway.