AUTOREFRESH 
Greece is probably a goner. Time to worry about Italy, Spain
Forget any talk about Greece leaving the euro zone being a good thing… Five years from now it may look like a good thing. But for the near-to-medium term this has the potential to be a catastrophe many times the magnitude of Lehman.
The timing of the EU’s ultimatum is fortuitous in that global leaders are already gathering for the G20 summit. Expect them to come up with some sort of gargantuan pre-emptive emergency package to try and stem the bleeding that is sure to follow a Greek rejection of the euro. Because if they don’t, the market will immediately turn on Italy first, followed by Spain, followed by Belgium, followed by France.
Once the dominoes start falling, who knows where they will stop.
Look for massive volatility in the weeks ahead with deep dives in the euro followed by face-ripping rallies. Repatriation of offshore assets is likely to cause bouts of euro strength and heavy liquidation of emerging market currencies as subsidiaries are put on the auction block by banks that suddenly have larger holes in their balance sheets then they, or anyone else had bargained for. Those estimates of European banks needing only EUR 106 bln in fresh capital? They are headed up kids. Way up.
On the bright side, the ECB will probably start printing euros in droves and the Fed can’t wait to join in the fun.
So while the markets will dive, we’ll get to pay more for gas and groceries. Oh joy!
Lord knows there will be plenty of opportunity between now and when Old St. Nick boards his sleigh.
I love your brute honesty. We need more people like you. If the printing presses ramp up through out the world commodities will sail. Would it not be wise to own say the Aussie Dollar? Also here in the US as you are well aware of wages are kinda stagnant at the moment. This is hampering peoples spending as food and energy have taken main focus. I know working at The Home Depot which is 20 miles from my house is costing me $35 a week. Mind you my wage is only $7.60/hr and when hours are getting slashed because of below projections for their monthly profits. It’s hard to make ends meet right now. I expect higher prices in the next year or 2 if nothing changes.
If Greece is able to reject the Euro, default on most of their debt and start to print their own currency and is able to avoid deep austerity measures, other countries will follow and eventually doom the Euro – just my two cents (or 20 cents in inflated terms).
…and here I thought I had a negative outlook. THough i can’t argue with you points..spot on.
My two cents too….Nobody will accept the new Greek currency though and the Greeks themselves cannot control the socialistic living/benefits they are receiving so it will be a disaster for them and it will cause more Kaos than Control has ever seen. I agree, it will be drastic there and end up falling apart here if we continue to follow in their foot steps.
Sorry to say maybe Greece is the world’s wake up call to get their debt in order. If the US Defaulted on it’s debt (which it won’t because we can print money to no end at the expense of rampid inflation) the world would be thrown into such a tizzy no one would lend. countries would probabl revert back to protectionism policies. The Euro is flawed IMO because how can a central bank dictate what other countries can do in their own sovereign territory. I dunno…I’m just confrazzled at this whole mess.
If Greece would have they’re own printing press, how can they default?
The best thing for Greece is, is for Panandreou to get axed on the confidence vote and to have an election and Samaras get elected. Renegotiate the IMF/EU deal and allow the private sector to dig them out of the hole their in. It’s rather obvious the current plan is a disaster for Greece. Austerity and tax hikes, is a recipe for disaster. Very poor plan and Greece will never, ever, achieve anything on this current plan. Ridiculous. Flat out, ridiculous and a very poor plan. Samaras’ plan (if he’s elected, current IMF/EU plan is renegotiated and his plan is implemented) can allow Greece to flourish. Greece can easily go from poster child of total kaos, to a poster child of how to combat deflation in an economy. It’s not rocket science. Just damn, allow it.
Sorry Jamie the Picture your picture you are painting is far Too Black. Greece is Top Small to Be the First Domino.