Despite a cacophony of denials, Greece will soon default. Even asking for a re-negotiation of it's debt is
technically a default. I know that the politicians in Europe and the United States have said there wouldn't be a default, but
they lack the stomach for bringing bad or unpopular news. Within weeks a pattern of collapsing economies will start
to come forward to unburden themselves of their obligations. Of course, the Greeks are known for their disorderly
behavior and unwillingness to compromise. Expect panic, civil disorder and conflict.
We can expect the nations most likely to fold first; the P-I-I-G-S. Short for Portugal, Ireland, Italy, Greece and Spain
They will collapse of their own accord. Momentum will build within stronger and more arrogant nations until they too will
be forced to renounce their debt. Eventually all nations will become casualties of over sold spending.
We can expect dark days and an every man for himself existence until the situations resolved. I don't know the
future beyond these broken markets. Greed, gluttony and the collective irresponsibility of us all has brought us this reality. It
will take Jesus Christ Himself to bring sanity and responsibility back to this broken world. I'm glad we know Jesus as the
Lord and Savior.
Fitch Says Greece to Default, Believes Will Be Orderly
Published: Tuesday, 17 Jan 2012 | 7:06 AM ET
Rating agency Fitch said on Tuesday that Greece would default on its debt, although it said that such a default was likely to take place in an orderly manner.
The Parthenon in Greece
Scott E. Barbour | Getty Images
"It is going to happen. Greece is insolvent so it will default," Edward Parker, Managing Director for Fitch's Sovereign and Supranational Group in Europe, the Middle East and Africa told Reuters on the sidelines of a conference in the Swedish capital. "So in that sense it shouldn't be a surprise to anyone."
The Fitch comments come after Moritz Kraemer, head of Standard & Poor's rating agency's European sovereign ratings unit, said on Monday Greece would default shortly on its debt obligations.
Parker said that Fitch believed that even a voluntary agreement by private investors to take a haircut on Greek debt would constitute a default.
"We have said for a long time that we don't think this PSI is the way to go and we would treat it as a default. It clearly is a default, however they try to spin it," he said.
Parker said the worst result would would be a disorderly default.
"That, would be, for us, the really damaging situation, but one which we are certainly not expecting to happen because, clearly, in a rational situation you would think Greek politicians and European policy makers would ensure that it doesn't happen."