The Greek Referndum

[william the wie]

How big of a deal will this become?

 

[JimBowie1958]

How big of a deal will this become?

If the Greeks vote the agreement down they will likely go into default, and in these days of CDS magnification, other major banks in Europe and then the US will topple. A chain reaction of bank busts will destroy a serious chunk of available credit (30-50% of M3 wealth?) and businesses will cancel expansions, go out of business and/or contract their operations initially due to this shortage of credit, but then afterwards it will be increasingly due to the subsequent contraction of the consumer markets.

The ripple effect will be much larger than little Greece itself.

They have become the pariah of the EMU.

 

[editec]

The snowball of a Greek default will start an avalanche of bankster bankruptsies that might bury the entire world economy for some time to come.

We do have a BALANCE SHEET deflationary depression, after all.

If Greece can't pay its debt, then others can't pay theirs leading to still others who can't pay theirs, and so on and so forth throughout the world banking community.

Could be some might interesting times ahead, folks.

Invcidently, Gold and other commodities won't be a great hedge against that eventuallity.

So if you're playing those markets on margin, I'd be hedging those bets.

 

[Mad Scientist]

If the Greeks default and the Eurozone goes down that means that the Banking Cartel that is holding the world economy hostage with it's 1.5 Quadrillion in Derivatives Scam goes down with it!

Isn't it always a mess after a war? This is a war. We can rebuild after wards.

Max Keiser sums it up perfectly:

[youtube]Y2vsYdReMCg[/youtube]

 

[william the wie]

Four posts and five opinions? The referendum is on hold and instead a vote of no confidence and new elections seem likely to derail everything.

 

[Baruch Menachem]

Stopping the elections was a bad idea. The Greeks now think they can go for broke.

 

[JimBowie1958]

The snowball of a Greek default will start an avalanche of bankster bankruptsies that might bury the entire world economy for some time to come.

We do have a BALANCE SHEET deflationary depression, after all.

If Greece can't pay its debt, then others can't pay theirs leading to still others who can't pay theirs, and so on and so forth throughout the world banking community.

Could be some might interesting times ahead, folks.

Invcidently, Gold and other commodities won't be a great hedge against that eventuallity.

So if you're playing those markets on margin, I'd be hedging those bets.

I am planning to take a multiple number of approaches to protecting my meager wealth, from buying gold to storing food/medicine (lol, prepare for the worst) to packing away as much cash as possible.

If this thing crashes, M3 wealth will be destroyed in such amounts I think we will be in a very long deflationary period, coupled with increased prices of imported goods, sort of the worst of both scenarios.

But why do you discount the use of storing gold?

 

[william the wie]

In nominal terms gold does not rise in deflation and some leveraged positions will be liquidated deflating gold prices. In real terms the trendline for gold rises during deflation is up. Accounting artifacts can and do mislead depending on what you are using to keep track of values.

 

[alan1]

Stopping the elections was a bad idea. The Greeks now think they can go for broke.

I thought they were already broke.

 

[Trajan]

bears-strearns is Greece, Italy is Lehman and it will be a big deal. they can scatter all the manure they want, there is and never will be a 'deal' till the Euro is gone.

 

[william the wie]

bears-strearns is Greece, Italy is Lehman and it will be a big deal. they can scatter all the manure they want, there is and never will be a 'deal' till the Euro is gone.

Actually the hit from the Greek deal is much bigger than Lehman Brothers even if it goes through, there is no comparable for Italy except maybe the 1923 collapse of Germany.

 

[Sallow]

Stopping the elections was a bad idea. The Greeks now think they can go for broke.

They had a vote of confidence vote for Papaderus..which he won. It was a stupid thing, however, for him to suggest it.

 

[JimBowie1958]

In nominal terms gold does not rise in deflation and some leveraged positions will be liquidated deflating gold prices. In real terms the trendline for gold rises during deflation is up. Accounting artifacts can and do mislead depending on what you are using to keep track of values.

I agree with that, but I wouldnt buy PMs to make moer money, but merely to hold on to more of what I have left.

PMs arent a speed boat so much as a life boat.