If Greece Exits, Here Is What Happens Zero Hedge thinks maybe/grain of salt. More importantly, will Greece follow Iceland or Germany? Greek skata hits fan in three.. Two..
An unprecedented financial crisis is lurking on the horizon as Market Oracle warns of Greece’s exit from the Eurozone The Extinction Protocol. Excerpts:
What may be lost in the noise that is the mainstream press is the fact that Greece has not been in a recession or even a depression, Greece has been in a state of slow motion economic collapse on the scale of past economic collapses such as that of Argentina but so far without the ability to default, devalue and inflate.
And:
Greek politicians traded insults and accusations Sunday following an effort by President Karolos Papoulias to broker a coalition government, increasing the possibility of new elections in the debt-stricken country. Papoulias called together the leaders of the three biggest parties on Sunday, a week after indecisive elections and three failed attempts to form a government. A default by Greece could drag down other troubled governments such as Spain and Portugal. Europe is keeping a nervous eye on Greece, fearing that the political chaos there could lead to defaults on debt that could threaten the future of the euro. Greek failure — or refusal — to make debt payments could hurt banks across Europe. The eurozone economy is fragile, and any financial shock could plunge the region into a deep recession, a development that would ripple across the globe. A default by Greece also could drag down other troubled governments such as Spain and Portugal.
Merkel's CDU Trounced In Most Populous State Elections Over Austerity; Pirates Strong Also from Zero Hedge. Excerpts:
Another weekend, another stunner in local European elections, this time as Merkel's CDU gets a record low vote in the state elections of Germany's most populous state North Rhein-Westphalia. According to a preliminary projections by ARD, the breakdown is as follows:
•SPD:39%
•CDU: 26%
•Greens:12%
•Pirates: 7.5%
•FDP: 8.5%
•Left:2.5%
And:
Three JPMorgan executives expected to resign over $2 billion loss This is only the beginning. Of everything.. Raw Story. Excerpts:
Three top executives at JPMorgan are expected to resign this week in the wake of a $2 billion trading loss.
The Wall Street Journal reported on Sunday that the three include Ina R. Drew, the head of the risk-management division responsible for the loss, along with the top executive and a managing director at the London branch that placed the trades under her direction.
According to several JPMorgan executives, Drew had offered her resignation several times since the extent of the losses became known in late April, but CEO Jamie Dimon had previously refused to accept it.
The situation changed however, when Dimon revealed the loss on Thursday and it led to a 10% drop in the firm’s stock price the next day. “We made a terrible, egregious mistake,” Dimon has since admitted. ‘There’s almost no excuse for it.”
The Jaime Dimon Countdown-To-Quitting clock begins!
Australia the most ‘obvious’ bubble in 30 years, says economist Financial Post. Excerpts:
As far as bubbles go, they don’t get more obvious than Australia, according to one economist and noted bear.
Albert Edwards, economist with Société Générale, put out a note on Thursday morning whose title says it all: “The biggest bubble in recent history is heading for the mother of all hard landings.”
Mr. Edwards cites Australia’s extreme reliance on the Chinese economy as the foundation for the current bubble. After all, Australia, a global heavyweight in mining, is dependent on the global commodity boom that China has largely helped fuel over the last decade.
“All we have in Australia, at its simplest, is a credit bubble built upon a commodity boom dependent for its sustenance on an even greater credit bubble in China,” he said.
And:
Mr. Edwards adds that the current bubble has been precipitated by the fact that Australia has not experienced a recession for more than 20 years — making investors complacent as a result.
“The absence of any recession since 1991 has led Australians to have an excessive appetite for debt in the belief the future will reflect the past,” he said.
And complacency, of course, is a big factor in bubble creation. That has led Mr. Edwards to conclude the following about Australia:
“Of all the bubbles I have seen over the last 30 years in this industry, this one is even more obvious than the rather prominent nose on my increasingly haggard face,” he said.
An unprecedented financial crisis is lurking on the horizon as Market Oracle warns of Greece’s exit from the Eurozone The Extinction Protocol. Excerpts:
What may be lost in the noise that is the mainstream press is the fact that Greece has not been in a recession or even a depression, Greece has been in a state of slow motion economic collapse on the scale of past economic collapses such as that of Argentina but so far without the ability to default, devalue and inflate.
And:
Greek politicians traded insults and accusations Sunday following an effort by President Karolos Papoulias to broker a coalition government, increasing the possibility of new elections in the debt-stricken country. Papoulias called together the leaders of the three biggest parties on Sunday, a week after indecisive elections and three failed attempts to form a government. A default by Greece could drag down other troubled governments such as Spain and Portugal. Europe is keeping a nervous eye on Greece, fearing that the political chaos there could lead to defaults on debt that could threaten the future of the euro. Greek failure — or refusal — to make debt payments could hurt banks across Europe. The eurozone economy is fragile, and any financial shock could plunge the region into a deep recession, a development that would ripple across the globe. A default by Greece also could drag down other troubled governments such as Spain and Portugal.
Merkel's CDU Trounced In Most Populous State Elections Over Austerity; Pirates Strong Also from Zero Hedge. Excerpts:
Another weekend, another stunner in local European elections, this time as Merkel's CDU gets a record low vote in the state elections of Germany's most populous state North Rhein-Westphalia. According to a preliminary projections by ARD, the breakdown is as follows:
•SPD:39%
•CDU: 26%
•Greens:12%
•Pirates: 7.5%
•FDP: 8.5%
•Left:2.5%
And:
Chancellor Angela Merkel's conservatives suffered a crushing defeat on Sunday in an election in Germany's most populous state, exit polls showed, a result which could embolden the left opposition to step up attacks on her European austerity policies.Merkel's attention will now be divided between the financial crisis and domestic concerns, like keeping her job. I think Germany has begun to de-stabilize. Albeit a long way away, this vote was a pretty visible step in that direction..
Merkel remains popular at home for her steady handling of the euro zone debt crisis, but the sheer scale of her party's defeat represents a heavy blow that could tilt the German political landscape and leave her more vulnerable to domestic critics.
According to an exit poll for public broadcaster ARD, the centre-left Social Democrats (SPD) won 39 percent of the vote and will have enough to form a stable majority with the Greens, who scored 12 percent.
The two left-leaning parties had run a fragile minority government for the past two years under popular SPD leader Hannelore Kraft, whose decisive victory on Sunday could propel her to national prominence.
Merkel's Christian Democrats (CDU) saw their support plunge to just 26 percent, down from nearly 35 percent in 2010, and the worst result in the state since World War Two.
Three JPMorgan executives expected to resign over $2 billion loss This is only the beginning. Of everything.. Raw Story. Excerpts:
Three top executives at JPMorgan are expected to resign this week in the wake of a $2 billion trading loss.
The Wall Street Journal reported on Sunday that the three include Ina R. Drew, the head of the risk-management division responsible for the loss, along with the top executive and a managing director at the London branch that placed the trades under her direction.
According to several JPMorgan executives, Drew had offered her resignation several times since the extent of the losses became known in late April, but CEO Jamie Dimon had previously refused to accept it.
The situation changed however, when Dimon revealed the loss on Thursday and it led to a 10% drop in the firm’s stock price the next day. “We made a terrible, egregious mistake,” Dimon has since admitted. ‘There’s almost no excuse for it.”
The Jaime Dimon Countdown-To-Quitting clock begins!
Australia the most ‘obvious’ bubble in 30 years, says economist Financial Post. Excerpts:
As far as bubbles go, they don’t get more obvious than Australia, according to one economist and noted bear.
Albert Edwards, economist with Société Générale, put out a note on Thursday morning whose title says it all: “The biggest bubble in recent history is heading for the mother of all hard landings.”
Mr. Edwards cites Australia’s extreme reliance on the Chinese economy as the foundation for the current bubble. After all, Australia, a global heavyweight in mining, is dependent on the global commodity boom that China has largely helped fuel over the last decade.
“All we have in Australia, at its simplest, is a credit bubble built upon a commodity boom dependent for its sustenance on an even greater credit bubble in China,” he said.
And:
Mr. Edwards adds that the current bubble has been precipitated by the fact that Australia has not experienced a recession for more than 20 years — making investors complacent as a result.
“The absence of any recession since 1991 has led Australians to have an excessive appetite for debt in the belief the future will reflect the past,” he said.
And complacency, of course, is a big factor in bubble creation. That has led Mr. Edwards to conclude the following about Australia:
“Of all the bubbles I have seen over the last 30 years in this industry, this one is even more obvious than the rather prominent nose on my increasingly haggard face,” he said.
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