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For those of you who haven't heard about this, CNN has a bit more facts in it's coverage: http://edition.cnn.com/2011/10/06/politics/occupy-wall-street/index.ht

by tpatke 15y ago

For those of you who haven't heard about this, CNN has a bit more facts in it's coverage: http://edition.cnn.com/2011/10/06/politics/occupy-wall-street/index.html?hpt=ibu_c2 http://edition.cnn.com/2011/10/06/politics/occupy-wall-stree... The full impact of the greek default hasn't hit yet and it is not unreasonable to expect that Italy or Spain may default next. People have already started leaderless protests. Meanwhile - it's pretty easy to make money on the way down assuming you have it to begin with. It is not hard to predict some pretty big changes in the next few years.

danmaz74 15y ago
Italy and Spain are in a completely different situation if compared to Greece. Expecting that they will default is unreasonable.
- diolpah 15y ago
  Spot on. And in 2007, the subprime housing crisis was "contained". Totally unreasonable to suspect that debt default contagion actually happens. Carry on, nothing to see here.
- bd_at_rivenhill 15y ago
  Italy and Spain are dangerously over-leveraged in a low growth environment and thus vulnerable to a speculative attack that pushes interest rates up long enough for them to go into default. It is not clear yet whether the European establishment will toe the line on not letting a sovereign default on its obligations, but if they fail to do so, then such an attack becomes much more likely.
  - stygianguest 15y ago
    Italy. Yes. Spain. No. Spain has a smaller debt 65% of GDP compared to most western countries, including the USA (92%) and Germany (83%). They do have huge economic problems. Right now the biggest danger is that outside trouble brings down their banks.
    - danmaz74 15y ago
      On the other hand, Italy is running a primary surplus, its families are among the less indebted in the Western world, and its banks have liquidity. To put it simply: if needed, it is still possible for the government to raise a lot of money, for example through a property tax - something that has already been done in the past and is being discussed now.

by tpatke 15y ago

danmaz74 15y ago

Italy and Spain are in a completely different situation if compared to Greece. Expecting that they will default is unreasonable.

diolpah 15y ago
Spot on. And in 2007, the subprime housing crisis was "contained". Totally unreasonable to suspect that debt default contagion actually happens. Carry on, nothing to see here.
bd_at_rivenhill 15y ago
Italy and Spain are dangerously over-leveraged in a low growth environment and thus vulnerable to a speculative attack that pushes interest rates up long enough for them to go into default. It is not clear yet whether the European establishment will toe the line on not letting a sovereign default on its obligations, but if they fail to do so, then such an attack becomes much more likely.
- stygianguest 15y ago
  Italy. Yes. Spain. No. Spain has a smaller debt 65% of GDP compared to most western countries, including the USA (92%) and Germany (83%). They do have huge economic problems. Right now the biggest danger is that outside trouble brings down their banks.
  - danmaz74 15y ago
    On the other hand, Italy is running a primary surplus, its families are among the less indebted in the Western world, and its banks have liquidity. To put it simply: if needed, it is still possible for the government to raise a lot of money, for example through a property tax - something that has already been done in the past and is being discussed now.