Extend, Amend and Pretend hitting a dead end?

[william the wie]

France, Italy, Portugal, Greece, Spain, Japan and China are running out of ways to window dress their insolvency. How long until this new Lehman Brothers moment hits and countries rather than banks go belly up?

 

[DarkFury]

Well if the domino effect holds up. A majority of the debt of Greece is held by Germany whose social programs are now strained. Spain holds a lot of German debt.

China's debt is not an issue as long as exports hold. They are weak but not totally failing. So in Europe I would expect Germany to have a "bank holiday" next.

But I think the next biggest failure to come next will be the tie between Venezuela as it will default on debt to Panama.

 

[william the wie]

What caused the original Lehman moment was either the US treasury not bothering to check UK bankruptcy or the political appointees not listening when they did. At some point some decision maker just breaks and it is hard to predict when and who. In the US it will be the blue states this time around. Since the only political solutions will cause massive internal tax flight I'm rooting for Hillary in a squeaker.