Euro Economy Blows Out

Like wildfire, the debt destruction spreads -

A fierce global equities sell-off was sparked on Tuesday after ratings agency Standard & Poor's cut Greek debt to junk status, while a downgrade to Portugal also stoked concerns about a widening eurozone crisis. As the European Union announced that it would hold an emergency summit on Greece, the Frankfurt stock market plummeted 1.93 percent and Paris plunged 2.16 percent in late morning deals. London fell 0.98 percent, one day after suffering its biggest one-day loss since November. Lisbon tumbled 5.56 percent and Madrid fell by 2.72 percent, while Athens was down 1.69 percent after massive losses in recent days.

Spain has now been downgraded to AA and finally, the bailout total is more in line with 100 billion euros. Just for Greece.

The Real Effect
Here's what I see so far --- Greece is kind of like Lehman Brothers. Not big, but big enough to cause a LOT of damage. The key date that the European Central Bank (ECB) has to get this done by is May 19th. That's when Greece's bonds are due.

The money would be coming from Germany, but the German and Greek people want NOTHING to do with a bailout. If Greece blows out, it'll blow out Spain, the U.K., Portugal. Each one of those, in turn will blow out more countries.

If Greece doesn't blow out, the pressure will be on to bail out Portugal who will just become the next, bigger Greece. In June, California has bonds due and they're in the same boat. There's a world of hurt coming fast. I think they can prop it up a bit longer perhaps 3-6 months? But every time they do, they make the end result that much more devastating, EXPONENTIALLY.

Look out for the shell game at this point. This is where the "leaders", who caused the mess by the way, give you your solution by stating the only thing that will save us is TOTAL GLOBAL POWER.

"Only a sustainable global economy can continue to guarantee growing wealth without jeopardizing the chance for future generations to meet their own needs." And how do we sustain it? Why, by having the developed world issue half a trillion in debt each and every month.

But to achieve their goal, they need to first be UNSUCCESSFUL with their bureaucratic efforts. It only works if you bring in a global despot as the world savior, much like Adolph was to Germany in the 30's.

A global Hitler you say? No way, it could neeeever happen.