gloomsday speak here, stuff like this is circulating in financial newsletters:<br><br>(<a href="http://blog.alexanderhiggins.com/2011/06/17/economists-msm-warn-global-armageddon-scenarios-masses-riot-europe-calls-revolution-spread-28611/">http://blog.alexanderhiggins.com/2011/06/17/economists-msm-warn-global-armageddon-scenarios-masses-riot-europe-calls-revolution-spread-28611/</a>)<br>
<br><p>Financial experts are warning of a ‘Lehman Moment’ as the European
markets are beginning to show signs of unraveling in the wake of the
Greek crisis.</p>
<p>“The markets have moved from simply pricing in a high probability of
a Greek debt default to looking at a scenario of it becoming
disorderly and of contagion spreading to other economies like Portugal,
like Ireland, and maybe Spain, Italy and Belgium.” a former UK
Treasury official told <a href="http://www.bloomberg.com/news/2011-06-16/europe-s-lehman-moment-looms-as-greek-debt-unravels-markets-euro-credit.html" target="_blank"><strong>Bloomberg news</strong></a>.</p>
<p>Many European countries and banks currently hold billions in Greek
debt, meaning that a Greek default will act like a virus throughout
Europe.</p>
<p>According to the <strong><a href="http://www.bis.org/publ/qtrpdf/r_qt1103.htm" target="_blank">Bank
for International Settlements</a></strong>, Spanish banks currently
hold $600 million in Greek debt, Italian banks hold $2.6 billion, UK
banks hold $3.2 billion, French banks hold $19.8 billion, German banks
hold $26.3 billion and other Eurozone countries hold a combined total
of around $15.7 billion in Greek debt.</p>
<p>US banks also hold $1.8 billion in Greek debt and Japanese banks
hold $500 million in Greek debt.</p>
<p>The euro has declined by more than 2 percent against the already
vastly devalued dollar within the past two days. Equities declined
around the world, while corporate bond protection costs soared to their
highest level since January. There is now an estimated 78 percent
chance that Greece will not pay its debts.</p>
<p>Four of Greece’s largest banks have been<a href="http://www.financialmirror.com/News/Business_and_Finance/23724" target="_blank"><strong> downgraded by Standard & Poor’s</strong></a>,
while Moody’s Investors Service <a href="http://www.moodys.com/research/Moodys-places-SocGen-CASA-BNPP-on-review-for-possible-downgrade?lang=en&cy=global&docid=PR_220876" target="_blank"><strong>said it may downgrade</strong></a> BNP Paribas
SA and two other big French banks owing to the amount of Greek debt
they hold.</p>
<p>A worldwide market freeze on the scale of that seen in 2008
following the collapse of Lehman is looking increasingly likely. Such a
scenario would send shockwaves through currencies, money markets,
equities and derivatives globally.</p>
<p>The Greek Prime Minister, George Papandreou, is seeking a
parliamentary vote on a 78 billion-euro ($110 billion) program of
austerity cuts and asset sales. The <a href="http://www.ft.com/intl/cms/s/0/d2702e02-980d-11e0-85e9-00144feab49a.html#axzz1PRfFOdz7" target="_blank"><strong>EU and the IMF have announced </strong></a>that
the program must be passed by the end of the month in order that the
country can receive “funds disbursement”.</p>
<p>Should such a motion not pass, “Armageddon scenarios come into play,
which include default and potentially the whole contagion scenario
plays out.” Charles Diebel, head of market strategy at Lloyds Bank
Corporate Markets in London, wrote in a note to clients yesterday.</p>
<p>The Greek people, who are now facing either total collapse of their
country’s economy or the fire sale of everything of any value that the
country owns, have taken forcefully to the streets in protest.</p>
<p>Central Athens has descended into a war zone with ski masked
protesters violently provoking police into firing tear gas into crowds
of otherwise peaceful protesters.</p><br clear="all"><br>-- <br>P2P Foundation: <a href="http://p2pfoundation.net" target="_blank">http://p2pfoundation.net</a> - <a href="http://blog.p2pfoundation.net" target="_blank">http://blog.p2pfoundation.net</a> <br>
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