The Financial Media Was Wrong on Greece… and They’re Wrong on the Next Crisis Too
By Graham Summers
GoldSeek.com
Friday, 7 August 2015
Let’s talk about the Greek issue.
More than enough ink has been spilled on this from the mainstream financial media. However, I do think we there are a few key takeaways we should note from this whole debacle.
1) Elements of the financial media is either unbelievably lazy or completely complicit in helping to maintain the illusion of success for the Centralized powers (large governments and Central Banks).
2) The political class and Central Banks are unable to resolve debt issues in any meaningful way.
3) The real “bottom” or level of “price discovery” is far lower than anyone expects due to the fact that the run up to 2008 was so rife with accounting gimmicks and fraud.
Regarding #1, it is worth noting that the Greek Crisis actually first started in 2009 when the country’s credit ratings were cut by all three credit rating agencies: Moody’s, Standard and Poor’s, and Fitch.
The first actual request for a Greek bailout came in April 2010, over five years ago. Since that time, Greece has received two formal bailouts, its credit ratings have been dropped to “junk,” and its GDP has collapsed over 20%: an amount roughly equal to the economic collapse experienced by Argentina during its 2000-2001 crisis.
Throughout this entire process, the financial media media has run thousands of articles proclaiming the Greece crisis was “over” or “fixed.”
Below is a spate of headlines from this period.
The Rest…HERE
