Greek tragedy will have sequels

"The arrogance of officialdom should be tempered and controlled, and assistance to foreign hands should be curtailed, lest Rome fall."
Marcus Tullius Cicero

So one of the "PIIIGS" (the extra I's added by me is for Ireland and Iceland which has already disappeared up its own backside)has collapsed in a heap of its own debt and the local Greek population has gone feral because they don't want to face the reality that they haven't worked hard enough, borrowed too much money and really have little hope of paying back their creditors. Cutting back on wastage now is almost too late. Their debt restructure or austerity plan will have them owing more debt in years to come.

Could we see this coming though?

I and others have been banging on (see links below)about countries with high debt levels either servicing loans and having to eventually pay back what they have borrowed after the hedonism of the last 10 years or so (true the PIIIGS with the recent exception of Ireland have always lead their economic lives close to the trough edge) but people seem to have swallowed the line of that great economist, business leader and socialist, Barack Obama when he proclaimed he could see the "green shoots of recovery" in the US economy.

Well those green shoots were provided courtesy of more debt (on top of the debt accrued over the last 10 years or so and for the PIIGs even longer) ladled out with some very large buckets and the countries that provided those borrowed buckets of cash are now having to face the prospect of servicing that debt and clearly some of them cannot.

Those green shoots were courtesy of a false debt laden spring and the PIIGS are now drowning in the mud left behind.

What is clear is that the PIIGS are just the tip of the iceberg and what lurks beneath that berg is a sequel of events that will make Titanic look like a bath toy.

Look to the US for a blockbuster.

The DOW plummeted almost 1000 points this morning on fears over a European economic meltdown but at time of writing this was down 385 points.

*Footnote: It appears that the majority of the DOW plunge was due to a futures trading error that led to a wholesale sell-off.


"Cannot people realize how large an income is thrift?"
Marcus Tullius Cicero


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