Congrats Germany: you have now opened the Pandora's box of infinite moral hazard, bailout renegotiations and unconditional rescues. Anything less than a pari passu bailout to Spain's, which the economy minister touted as having no political strings attached, will incite a revolution.I wonder how long this can be kicked around the EU before it hits us. At this point, everyone's buying US treasuries as a flight to safety, but US treasuries aren't REALLY safe when there's over $100 trillion in unfunded liabilities on our balance sheet, before we even get started on the state, municipal, and household debts. Then there's the dollar denominated derivatives market based on those debts. The last number I heard there was $700 trillion. Now we're talking about real money.
Oh, and the IMF has just been made obsolete.
Sunday, June 10, 2012
Europe's Slow Motion Collapse
From Zero Hedge: