Havey Organ has a great column today (click here) although you might want to skip down to where his survey of Europe Debt Crisis Deal reviews starts. Here's a few of the money quotes (most from this one report from The Economic Collapse:
- "people have begun to closely examine the details of the European debt deal, they have started to realize that this "debt deal" is really just a "managed" Greek debt default."
- "But investors are not stupid. Greece was allowed to default. If Italy or Spain or Portugal gets into serious trouble it is likely that they will be allowed to default too."
- "The big message that Europe is sending to investors is that when individual nations get into debt trouble they will be allowed to default and investors will be forced to take huge haircuts. As this reality starts to dawn on investors, they are going to start demanding much higher returns on European bonds. In fact, we are already starting to see this happen. The yield on two year Spanish bonds increased by more than 6 percent today. The yield on two year Italian bonds increased by more than 7 percent today. So what are nations such as Italy, Spain, Portugal and Ireland going to do when it costs them much more to borrow money?"
There's much more in Harvey's column worth scanning.