Since no news is generally bad news these days, and the fact that no meaningful progress can be reported from the EU's Summit in Brussels, we're taking this opportunity to engage in wild irresponsible and reckless speculation. Hey its what we do best!
From our vantage point, Greece is toast. To date, EU leadership claims to be awaiting the outcome of Greece's second round of elections, while simultaneously encouraging the tiny nation to honor its commitments. But behind the scenes, contingencies are being planned for Greece's exit.
There are strategies for an orderly exit as well as schemes for a disorderly collapse. Anyone in their right minds should be making a break for the banks now. BTW, Spaniards, Italians and the Portuguese may be evaluating where assets might be stashed if only for the medium term.
As far as we can determine, the global financial markets should be poised to take investors, big and small, for the wildest nerve-wracking ride they've had in six decades. How well America fortifies itself from being collateral damage will largely depend on its "Do Nothing Congress'" ability to do something. If history is any guide, the US Congress will do what it does best: Nothing!
There is no way the Euro Zone can withstand the EU's structural flaws as currently constructed. Until each individual nation state/member is willing to forgo some degree of economic sovereignty, the EU as a concept will always find itself fighting with itself.
As long as any member state can whimsically negate or renegotiate terms of agreements signed by previous administrations, the so-called European Union is destined to fragment.
Without the adhesion of essential fiscal and economic cohesion, the strong will eventually jettison the weak in order for the Euro Zone/EU to survive.
Even if Angela "Frau Sauer-kraut" Merkel succumbs to the charms of Francois "Pepe le Pew" Hollande, giving in on floating Euro Bonds issue, will only delay the inevitable. We say, lets get this party started!
In Other News: The suckers for Zuckerberg got what they deserved for failing to understand the real fundamentals on sound investing: Integrity, Character and Ethics. Integrity Character and Ethics do not come to mind when Mr. Zuckerberg name is mentioned, Anyone without these fundamentals firmly ingrained in their psyche should be avoided, least of all doing business with them.
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