I must admit the whole European meltdown is happening much quicker than I, a staunch pessimist, would have thought.
I guess we can chalk it up to markets being incapable of waiting. All the articles that I read about the crisis were suggesting that the $45 billion euro bailout package by the IMF and the EMU would allow Greece to hold out for another year at best. Clearly the writing on the wall was so BIG and OBVIOUS that markets decided there was no better time than the present to get the default ball rolling.
Here’s a quote from Naked Capitalism that echos what I have been suggesting for some time. The financial crisis is just getting started:
“So the whole idea that the financial crisis was over is being called into doubt. Recall that the Great Depression nadir was the sovereign debt default phase. And the EU’s erratic responses (obvious hesitancy followed by finesses rather than decisive responses) is going to prove even more detrimental as the Club Med crisis grinds on.”
People are finally starting to pull their heads from the sand (and other dark places) to realize that the World is faced with a monstruous debt crisis, one that never should have been allowed to occur in the first place. It would seem that nothing was learned from The Great Depression. Our governments have been bamboozled by Global Finance. I think that the U.S. political elite deserves a particular concentration of scorn for its irresponsible leadership in these affairs. You can blame the greedy jerks on Wall Street all you want but the ultimate failure has been a political one. American politics, on both sides of the aisle, has allowed itself to be captured by the Military Industrial Complex and Big Finance. Let’s face it, they are one and the same. It is time for the countries of the world to start brushing up their emergency plans. Damage control is what the next 10 to 15 years has in store. I have a very hard time imagining how any kind of normalcy will return until this brewing shitstorm of international idiocy blows over.
I doubt that this Greek crisis is the begining of the end of humanity. After all, the only creature more resilient that people are cockroaches… Even rats wouldn’t survive very long without our staggering amount of waste to feed on. But I deeply feel that this crisis is the beginning of the end of the World as we know it. This is not necessarily a bad thing. Those of us who grew up in the 70s, the dawn of the truly modern age with its computers, television, better living through chemistry, lived in a completely different Universe than our grandparents and even more so than that of our great-grandparents. But to think that the pace at which “innovation” is driving people mad…right fucking mad…can continue without some form of global nervous breakdown is not only wishful thinking but criminally insane. I keep repeating the same point.. The World Wars of the 20th Century were in large part a result of the Enlightenment catching up with itself… The race for economic and intellectual superiority between nations was only understood to be achievalbe through mililtary means. This way of thinking was consistent with human history up to that point but civilzation was not prepared to deal with the genocidal character of mechanized warfare. (more…)