Just like Jefferson County, Alabama, you cannot borrow forever, and when you begin borrowing (as we have begun to in the US) to make your interest payments, it's a bad sign, not sustainable unless God intervenes.
Euro Fears Spread to Italy as the Debt Crisis Deepens
Europe Recovery Rally Fizzles As French Bund Spreads Hit Record On Fresh Downgrade Rumor
Contagion
In my view, all Euroland can do now is to pray that somebody strikes oil in Provence or Tuscany - and I don't mean olive oil. Problem is, they don't pray over there anymore. I think they are screwed, and it will affect all of us. A slo-mo death spiral.
The Euroland project is in hospice care, it seems to me, on oxygen and IV morphine. There is not enough money available in the world to cover their crappy debt from their crappy, lazy, hyper-regulated welfare states, and they will never be able to pay it back. Never. Furthermore, as my Wall St. friend tells me, defaults will trigger more CDSs than anybody in the world can cover. It's a shit show, as they say.
I would advise getting popcorn to watch the earthquake unfold, but it can hit us in the US with a financial tsunami here, across the pond.
Maggie: "The problem with socialism is that you eventually run out of other peoples' money." She never mentioned that you can run out of credit, too.
