The Greek financial system is in the process of totally imploding, and the rest of Europe will soon follow. Why? Because neither the Greeks nor the Germans are willing to give in, and that means:
- there is very little chance that a debt deal is going to happen by the end of June and
- we will likely see a major Greek debt default and
- potentially even a Greek exit from the eurozone.
The above edited excerpts, and the comments below, are from an article* by Michael Snyder (theeconomiccollapseblog.com) originally entitled The Next Great European Financial Crisis Has Begun which can be read in its entirety HERE.
At this point…
- credit default swaps on Greek debt have risen 456% in price since the beginning of this year,
- Over the past month, the yield on two year Greek bonds has skyrocketed from 20% to more than 30%,
- the Greek stock market has fallen by a total of 13% during the last three trading days alone and
- the market has priced in a 75% chance that a Greek debt default will happen.
This is what a financial collapse looks like, and if Greece does leave the euro, we are going to see this kind of carnage happen all over Europe…
For a very long time, I have been warning that a major financial crisis was coming to Europe, and for a very long time the authorities in Europe have been able to successfully kick the can down the road, but now it looks like we have reached the end of the road, and a day of reckoning is finally here.
Nobody is quite sure what is going to happen next, but almost everyone agrees that it isn’t going to be pretty, so you better buckle up, because it looks like we are all in for a wild ride as we enter the second half of this year.