Barron's says the only way out is for Greece to restructure. "Europe's official approach has been to muddle along and hope the problem will go away. It won't." The European banking system is like the U.S. banks in the summer of 2008. Total reality denial mode. It will cause a panic flight to Treasuries when their house of cards finally topples.
Greece talks about setting up a "bad bank". Doesn't anyone notice this is right out of the 2008 crisis playbook? Kicking the can is what you do when a crisis is too big to solve. They have been having "emergency meetings" every weekend. Does that remind you of anything?
There is going to be another deflationary bust that ruins the delusional, moral hazard crowd. Albert Edwards agrees with the Credit Bubble stocks thesis:
We still expect to suffer another deflationary bust that will take government bond yields to new
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FISERV FIRST SOLAR FINISAR FEI COMPANY FAIRCHILD SEMICONDUCTOR INTERNATIONAL
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