Greece’s fiscal crisis took a new turn to violence Wednesday when three people died in a firebomb attack amid a paralyzing national strike, while governments from Spain to the U.S. took steps to prevent the widening financial damage from hitting their own economies.
US markets are getting killed and overseas they're getting slaughtered. Wait, the market just took a headshot with the Dow down 8%! Gold is over 1200.
To make matters worse, the 'contagion' has already spread beyond Greece. Primarily the UK is the recipient at this moment as reports indicate it's budget deficit will hit 12% of it's GDP.
The Real Effect
Looks like 2008 all over again. Told you so.
I believe that we will witness a somewhat separated/isolated stage in Europe for a little while. (A month?) This will place the EU debt crisis ahead of the US debt crisis. I believe the meltdown will be fast, vicious and 'unforseen'.
Vox has a great article up on Capital Controls in the EU which may help to illuminate some of this position a bit more.
Like a cat this market has nine lives, the question is, which one are we on?
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