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Milton J. Madison - An American Refugee Now Living in China, Where Liberty is Ascending

Federalism, Free Markets and the Liberty To Let One's Mind Wander. I Am Very Worried About the Fate of Liberty in the USA, Where Government is Taking people's Lives ____________________________________________________________________________________________ "Extremism in defense of liberty is no vice. Tolerance in the face of tyranny is no virtue." -Barry Goldwater-

Tuesday, February 28, 2012

Ben Davies: Greece Is Just A Preview Of What's Coming For The Rest Of Us | ZeroHedge

When considering the default of the debt of Greece, we have to think that similar over indebted situation exists in many many countries and this will result in more insolvent countries and further defaults. The debt default of Greece is not done yet since the nations of Europe have still not faced the pain of writing down the debt to the proper level. More losses will be had for Greece and probably many other countries including the USA.....
The one thing we can be confident of is that at some point, these losses will be taken. The market will eventually force it.

And the second thing we can predict is: we don't know what will happen when they are. There is so much complexity in the counterparty exposure to Greece debt - as well as the much larger derivative exposure tied to this debt - that anything between "not much" and "worldwide financial conflagration" could be possible.

And that's just Greece. As other larger countries begin to sink under the weight of their sovereign debts, the risks to the global financial system increasingly escalates. Which is why Ben Davies has a hard time finding a good home for investment capital other than gold.
We could have a situation where modern life breaks down since strong national governments are frantically delaying the inevitable day of reckoning.

Ben Davies: Greece Is Just A Preview Of What's Coming For The Rest Of Us | ZeroHedge

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