Greece on Edge of Insolvency 24 Centuries After City Default

(Bloomberg) History’s first sovereign default came in the 4th century BC, committed by 10 Greek municipalities. There was one creditor: the temple of Delos, Apollo’s mythical birthplace.

Twenty-four centuries later, Greece is at the edge of the biggest sovereign default and policy makers are worried about global shock waves of an insolvency by a government with 353 billion euros ($483 billion) of debt -- five times the size of Argentina’s $95 billion default in 2001.

“There is a monstrously large amount of uncertainty and a massive range of possibilities,” said David Mackie, chief European economist at JPMorgan Chase & Co. in London. “A macroeconomic disaster could be averted but only by aggressive policy action” by central banks and governments, he said.

After two international-bailout deals, three years of recession and budget-cutting votes that almost cost him his job, Greek Prime Minister George Papandreou says throwing in the towel now would be a “catastrophe.” Potential consequences of a national bankruptcy include the failure of the country’s banking system, an even deeper economic contraction and government collapse. ........(more)

The complete piece is at: http://www.bloomberg.com/news/2011-09-22/greece-on-edge-of-biggest-insolvency-24-centuries-after-first-city-default.html

either they fork over a relatively modest 8 billion Euros to keep them afloat for the time being, or collapse the entire world financial system when the default swaps kick in. Of course the governments can nationalize the banks and tell the predators that bought swaps to make a fast buck at everyone else's expense to fuck off.

What really needs to be done is reign in derivatives. That way a default is limited to the actual amount of money involved instead of 20 or 30 times as much.

These worldwide parasites have (so far) eluded the consequences of creating derivatives of derivatives based on government bonds that have swelled to be a market worth many multiples of the original debt, and its time they start hurting for their own foolishness instead of thinking the average underpaid citizen will be expected to do without just to keep them in caviar.

www.ediblegold.com

I'm sure you sprinkled some this morning on your gruel. (boiled wheat - food of middle ages peasants)

(Try gruel - see why they call it that LOL) scorches easily.