Greece appears to be on the brink of receiving another bailout for a failed financial system. Socialism failed Greece... plain and simple. Sure Greece calls itself a democracy, but in reality socialism dominates their poiltical and economic landscape. Maybe an over-reliance on government help... maybe an under-reliance on self-sufficieny. Whatever it is, the Greeks are going hat-in-hand to the European Central Bank for bailout funds. Greece, while a minor player in total economic output (approximately 2-3% of entire EU), there is a reason to quell rising fears of political and social unrest.
This familiar theme will soon echo through California. According to a Nouriel Roubini interview this morning, there is little to no doubt that Treasury and Federal Reserve will come to their aid. Make no doubt about it, when Arnold Schwarzenager comes to D.C. looking for help, he will get whatever he needs. After all, unlike Greece's anemic contribution to the EU, California represents 15% of U.S. GDP. And that figure is nothing to sneeze at!!! This brings us back to a familiar theme. The U.S. government has benefitted from being a reserve currency. It can print money at will, and will more than likely print its way out of this situation as well. Bernanke, Geithner, and friends will assure everyone that everything is o.k..
According to R Seetharaman of Doha Bank, a more sinister force is at work. He believes the massive amount of de-leveraging that has taken place, specifically in various debt vehicles has done nothing more that transfer wealth from Main Street to Wall Street. Toxic assets infected everyone throughout the world. Mr. Seetharaman suggested that the only way to fix this mess is to build an economic system where everyone plays by the same rules. He believes the crisis is much more that a economic crisis, it is a crisis in human nature. Seetharaman believes the United Nations must be empowered to solve the crisis. Interestingly enough, he also believes in the massive power of the United States as a world leader underscoring its $13 trillion dollar economy!
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