February, Friday 10, 2012

DOW – 89 = 12, 801SPX – 9 = 1342NAS – 23 = 190310 YR YLD -.08 = 1.97%OIL  –  .79 = 99.05GOLD – 7.00 = 1723.10SILV –  .31 = 33.69PLAT – 4.00 =1662.00 We’ve been talking about the debt situation in Europe because it seems important, and Greece is the linchpin whose failure could send the wheel flying off the axle. Wednesday we told you Greece would have a deal on restructuring part of its debt; that deal was announced yesterday. Thursday we told you there would be social unrest in Greece. The strikes started today. The Greeks have already been hit with 25% wage cuts; now they’re being told they must accept additional 30% wage cuts in order to pay off bondholders who recognized weakness and forced them to roll over their debt at record high rates. The wage cuts are being pushed as a way to forestall bankruptcy, but they will still be deep in debt; even with the wage cuts they will still face debt of 120% of GDP in 2020, and that is the best case scenario; it is based on assumptions of some sort of growth. So the Greek people are being asked to sacrifice their own retirement and their childrens’ futures rather than telling the Banksters to take a hike. So far, the Greeks have been volunteering for massive cuts to their retirement programs, their pensions, their healthcare, government services, and wages; they have been docile as their taxes have increased by 30%; …

READ MORE →