Greece will eventually default. The Greeks don't want to take the necessary steps to correct their situation. Just like a crack head on welfare, they will never better their situation unless they are forced to do so. But here are the results, most are happening now anyways and most will be back on track in a short time!
News Headlines
(1) Greek Banks Get Nationized - Probably will happen anyways. Greek backs are relying on people who aren't going to make payments, not a good combo. Bad for Greece no doubt, but not for us.
(2) Europe Bank Get SLAMMED - $53 Bil in loans to Greece by UK, France and Germany. They will be hit hard and will probably require bailouts by THOSE countries. Bailing out Greece is a losing battle. If Germany wants its banks to survive the Greek default. Let Greece fry and worry about stabilizing your banks. Soon Greece will find little partners to invest in it!
(3) Insurers Get Smashed and of BK - Remember AIG! They insured millions of bad loans. Same think happening now. Again the individual countries should worry abut it's insurers, like we did with AIG. Fuck Greece.
(4) Global Credit Crunch - Um, we have that now! The crunch will get worse for a little while, but will stabilize.
(5) US Money Markets sink in value - Average interest rate right now is less than 1%! LOL, decreasing to 0% is not that much of a disincentives, since MM have paid less than the average savings account for a while.
(6) Central Euro Bank in Crisis - It's already in crisis with so many Euro countries in peril. Greece is going down either now or after the next bail out funds run out.
(7) Politician Crisis in Germany - Germans are STRONGLY against bailing out Greece, but they are strongly against bailing out private bankers (sound familiar Americans). When the Germany powerhouse economy gets hit like the US one did, Germans will be mad. However, I think the Germans will be madder after then pay another round of $10s of billions to Greece and then watch her default in two years!
(8) US Takes Note and Learns - First the government will finally see why reigning in spending is a MUST. It will be taken seriously. The average American will see this also. However, the average American consumer will spend less either way and save more. Good for the individual, bad for the economy! Consumer confidence drives our economy.
(9) Rise of Protectionism - Across Europe and probably at home. Maybe NAFTA will be appealed, China taken on?
(10) China hit HARD - American consumers buying less useless crap from China. US government engaging in the trade war with China. However, Europe is a ginormous market for China. Imagine them spending less and tossing up trade barriers with China! The Chinese people don't make enough to pay for the crap they manufacture. China could be headed toward economic meltdown and revolution!
(11) Ireland and Portugal Change Course - Booth I & P are the anti-Greeks. Their economies are in peril, but they are taking the necessary painful steps to pay their debt. If they see Greece default they might also. HOWEVER, after they see every country and private bank cut off Greece and turmoil that ensure. I believe the opposite will happen. I believe I & P (and Spain) will be more motivated than ever to avoid default at all costs. Heck America will also.
(12) US Raises Debt Ceiling - Just like Ireland and Portugal fearing the aftermath of a default America will also. We will raise the ceiling.
Look Greece default is inevitable. Either spend another $80 billions in a fruitless attempt to stop it, but in effect just delaying the inevitable. Or allow the crash to happen now!
