Karl W Miller's  Instablog

Greece Sovereign Debt Default and Europe Bank Liquidity Crisis Are Both Foregone Conclusions. Greece Economy Simply Can't Sustain Debt Load and Austerity Contraction.

Greece Economy Is Rotten To The Core as Crisis Has Clearly Progressed Beyond The Point Of No Return. A Greek Orderly Default Impossible Given The Counterparty Risk Involved.

Greece Economy Is Built on "Underground Cash Economy", Tax Evasion Is Way Of Life and Corrupt Social Employment Unions. When Have They Ever Told Truth?

Germany Is Desperate To Protect Its Banks And AAA Rated Economy. Germany Just Buying Time To "Ringfence Their Domestic Banks" From Greece and Italy, etc. Germany Knows Debt Levels Are Not Sustainable.

Germany Courts and Ministry Of Finance Have Been Very Clear: Legally Can't Co-Mingle Bailout Funds, No EuroZone Bonds, No European TARP.

German Legislature Wants Germany To Exit Greek Bailout, Representing The Will of German Citizens. By Law Any Spending For EU/Greek Bailout Must Be Approved by Upper/Lower Legislative Chambers,Which Will Never Happen.

Germany's top court has made it virtually impossible to participate in any proposed EuroZone Bond. Germany's Chancellor Merkel Can't Get Bailout Through Legislature. NEAH Projects Merkel Coalition Will Have To Call For Elections.

Credit Default Swap Prices on Greece/Italy/Portugal/Spain/Ireland At Record Highs; Market Dictates Outcome, Not Politicians. Europe Is In Full Economic Death Spiral. Any Debt Bailout Will Push Debt/GDP Ratios Off Charts as Negative Growth/Depression Persists.

Markets Are Saying The Greek Math Does Not Add Up. NEAH has Confirmed Greek Debt Will Absolutely Default/Restructure. Whether Greece Stays In EU As A Welfare State Remains Serious Political Issue.

Debt To GDP Ratios of 100%, and Zero Growth Economies Do Not Work, Never Have, Never Will. NEAH Confirms Germany Won't and Can't Risk It's Capital/Economy on Greece Welfare State. Greece Will Never Meet EU Financial Standards.

Europe Can't Spend Their Way Out of Recession/Depression. Europe Can't Be Fixed Until Massive Social Liabilities (Pensions,Unions,etc) Are Definitively Reduced Long Term.

Germany Will Ultimately Adopt a Go Alone Economic Strategy To Protect It's AAA Economy And Social Fabric.

Investors Failing To Accept The Extremely Deep Rooted Social, Economic and Debt Problems In Europe Will Face A Steep and Severe Economic Loss. There Is Not Enough Credit Default Swaps/Protection To Deal Cover Europe Bank/Sovereign Counterparty Risk

Business Creates Jobs, Creates Wealth, Creates Economic Stability, Not Government Bailouts/Handouts. Markets Pick the Winner and Losers.