According to Jeff Sica, President of SICA Wealth Management, "This weekend's bailout news does not imply a serious willingness on the part of Europe to tackle its financial crisis but instead implies an act of desperation to delay the inevitable, which is the failure of Spanish banks." Sica went on to say, "Further economic stimulus would only set the markets up for a greater fall in the future." (Hm-m-m-m. Where have we heard that before? Aren't they thinking about doing another economic stimulus here in the U.S.? Uh-oh).
The Big Question is whether Europe will be able to fend off the financial contagion from the debt crisis that is rapidly spreading from country to country. The rescue for Spain's banks comes only a week before a crucial election in Greece that could determine whether Athens will stay with the Euro bloc. Germany's former Vice-Chancellor, Joschka Fisher, is warning that the entire EU could collapse over this crisis. "If the Euro falls apart, so will the European Union, triggering a global economic crisis on a scale most people alive today have never experienced."
Most analysts think the bailout will fail. Italian officials privately worry that 125 billion won't be nearly enough and if the banks put any restrictions on the amounts people are allowed to withdraw, bank runs could result. People are already quietly removing money from the Greek banks.
A crisis in confidence and stability is the last thing Europe needs right now. It's as if the whole world is holding its collective breath waiting to see if the house of cards (i.e. the Global Financial System) will stand.
Although the current debt bomb is ignited in Europe, Asia is following close on its heels. Both Japan and China are beginning to show cracks, and in fact, economies all over the developed world are in serious trouble. And if you think the U.S. is immune, just wait.
An economy that encompasses the globe will not disintegrate over night, but unless drastic measures are taken soon, it will collapse in slow motion, over a period of years, affecting every one of us.
So, will this weekend's crisis be averted? Probably. But don't let that fool you. Global governments and banksters will do whatever it takes to kick this economic can of worms as far down the road as possible. But they can't make it go away. Essentially their fixes are only cosmetic and all the lipstick in the world won't change anything. They're still P.I.G.S.
A wise man once said: "Honor the LORD with your wealth, with the best part of everything your land produces; then your barns will be filled to overflowing and your vats will brim over with wine." Proverbs 3:9
- U.N. Peacekeeping Chief: Syria now in full-blown civil war.
- U.N.Secretary: Russia supplying attack helicopters to fire on Syrian protesters; Moscow denies it.
- Secretary of State Hillary Clinton: Terror is being used as a tool to further Iranian ambitions.
- CNN: The average American family has lost 40% of their wealth in the last 3 years.
- Fox News: Greeks pulling cash from banks as vote on Euro exit nears.
- Reuters: Central banks on standby to flood financial system with cash if necessary after Greek election.
- CNBC: Emergency G-7 meeting may be held in Mexico Monday or Tuesday to deal with Greece aftermath
- Bank of England: "The Euro zone crisis casts a black cloud over the world economy."
- USA Watchdog.com: "No matter how bad it looks in the EU, the problems with Europe are no where near as big as the ones here."
- Debka File: U.S., EU fake Iran's consent to discussing enrichment to fend off Israeli action; sham puts diplomacy on artificial life support.