The first cut of the European Sovereign Debt Crisis is not remotely the deepest. 21 conferences later, a witches brew of austerity and band-aid bailouts, all the European Union has to show is a repeat of history which is depression. Japan post-1989 followed the same course whereby the private sector was subordinate to the public sector. The government did not want the stock market to fall and would not allow hedging. Banks, the largest holders of publicly traded stocks had to be bailed out as the same mantra of "Too Big To Fail" was sung by politicians. Sadly, this course of action resulted in a 23 year depression and counting. The invincible LDP party was ousted going to show that a disgruntled public will want the heads of politicians when times are hard.
Greece either defaults or continues on the path to the black hole of Calcutta.
"ATHENS (Reuters) - Greece is in a "Great Depression" similar to the American one in the 1930s, the country's Prime Minister Antonis Samaras told former U.S. President Bill Clinton on Sunday.
Samaras was speaking two days before a team of Greece's international lenders arrive in Athens to push for further cuts needed for the debt-laden country to qualify for further rescue payments and avoid a chaotic default..."
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