Greece, Italy, what next?
Market contagion spreads to more European countries with Italy on the brink of collapse, Italian 10 year bond yields rise above 7% which is widely deemed unsustainable, Italy’s debt is E1.9 Trillion and at 120% of GDP and in need of 360 Billion in 2012 just to pay loans… but why should we care about all of this here in Australia?
Why are our banks down 4% today? because we are part of the global dominos, so it’s important that we understand the risks to us at home.
In my opinion, Italy is too big to fail and too big to save, sounding familiar? a bit like Lehmann brothers, on steroids. Four years on now from the major stock market crash and history is on the verge of repeating it all over again.
Just last week MF Global collapsed. MF Global were a trading desk for the Federal Reserve. How did it happen? Greed, all because of leveraged risk.
There is only one way we can save ourselves get on the ride down and profit. You can’t deny a world economic meltdown is not an ideal situation and has many adverse affects on everyone in the world, however – there are opportunities we can take to use this as our protection against this mess that the people & institutions who are ‘supposed’ to be protecting us, have created.
We really have no choice but to take things into our own hands.
Take a look at my video update at http://youtu.be/dxJu2HfZVBE
