Registered: Jan 2010
09-29-11 06:40 AM
You have to look thru all the 'moving peas around a plate' plans to leverage an overleveraged problem. It is an inescapable truth that you cannot solve a debt problem with debt; you can only solve a debt problem with income.
All these mechanations and schemes presented as solving a the problem are hopeless. They only serve to obscure who is going to take the hit in the inevitable default. All these plans are trying to push a lot of the hit to the northern european tax payers. They make it complicated for two reasons: one, in the hopes that the taxpayers will not understand and two, because they must torture the law to deny democratic process that would require explaining how they are screwing the taxpayers in favor of the creditors. The whole scheme will collapse as some of the many parties will realize that Greece can't possibly pay the debt service and the Greek government cannot survive the austerity. Another inescapable truth is that when you do not have enough income to pay your debt, you don't pay your debt.
The income required for a real solution can only come from growth. No one is talking about growth and there is no growth plan. Austerity is not a strategy; it is a result of the falure to grow in the face of unsustainable accrued debt. People who promote austerity as a solution while ignoring a growth strategy don't know what they are doing ( I know this includes the IMF, ECB, EFSF, EC and Tim Geitner and most Republicans).
Sell the rally.