We’re talking sovereign debt defaults now.
El-Erian [CEO of bond management giant Pimco], in so many words, says Greece will default. Krugman is talking about the real possibility of unwinding the euro and ends his piece with: “I think I’ll go hide under the table now.”
That’s some seriously gloomy language from arguably the most influential public economist in America.
Bank runs in Greece, which should come as no surprise.
The Eurozone wouldn’t be imploding if “if banks’ toxic gambling debts hadn’t been assumed by the world’s central banks.” Apparently, banksters must be protected at all costs, even if that means cratering the economy of one’s own country.
The central bankers have done the wrong things. They haven’t fixed anything, but simply transferred the cancerous toxic derivatives and other financial bombs from the giant banks to the nations themselves.
And in doing so, bailed out the criminals who created the toxic slime.
However, when not covering for the banks, their response to the Greece crisis has been, well, comical.
Zero Hedge video response on EU/IMF reaction to Greek debt crisis. “Presenting the EU/IMF’s strategic and tactical unit in action.”