HOUSE OF CARDS?

npr.org systemic risk? from feb piece

"SIEGEL: How big a problem would it be if, say, the Greeks defaulted and the E.U. did not come to their aid?

Ms. ISHMAEL: Well, let me put it this way: Greece has 300 billion euro in debt outstanding, as in two foreign creditors, which is a sizable chunk of cash. Greek debt, European debt is held by other governments, it's held by institutional investors, it's held by various banks across the world. And if there were to actually be a significant sovereign default, you know, that has ramifications for two reasons. People trust governments to pay their debts back. You know, one of the things as a country that you do is issue debt and people trust that you're going to pay that back.

And the second thing is if they dont pay that back, not only have they breached the trust of the international community, but they're putting financial institutions in, you know, themselves in danger. "

From what I understand, they are trying to borrow $60B euro, but if they have $300B or more in debt, boy the $60B may be just the beginnng of what is needed, Gremany is balking.

Dominoes anyone? The declines on the NYSE come with big volume, the rallies not so....."we're dumb, but we're not stupid"

My blog is now enterring into its 6th year.

Duratek