Now That Greece Has Defaulted, the Default Dominos Are Coming Fast
by Phoenix Capital Research
Now that Greece has defaulted (and it was a default) I believe that in the coming weeks we will see other PIIGS countries line up for defaults. Indeed, we are already seeing hints of this:
Portugal, Spain urge G20 members to help ease crisis
Spain and Portugal said on Saturday the euro zone’s debt crisis is a global problem, calling on the United States and other G20 powers to help contain the fallout.
Spanish Prime Minister Jose Luis Rodriguez Zapatero urged the G20 countries least affected by the crisis to provide “urgent stimulus plans” to shield the global economy.
Europe’s debt crisis looks set to dominate the summit of Group of 20 leading economies in France from Nov. 3-4.
Merkel: Must prevent others from seeking hair cuts
Chancellor Angela Merkel said on Friday it was important to prevent others from seeking debt reductions after European Union leaders struck a deal with private banks to accept a nominal 50 percent cut on their Greek government debt holdings.
Now that a precedent has been set for debt defaults, other nations will soon follow Greece into debt restructuring. This is where things will begin to get really interesting for the EU.
While Greece is already presenting serious problems for the European Union, it is Italy that will prove to ultimately break the Euro’s back.