June 18, 2011

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"“The problem you have is that it’s extremely unlikely the political system will work” in a way that solves Greece’s crisis, Greenspan, 85, said in an interview today with Charlie Rose in New York. “The chances of Greece not defaulting are very small.”"

That's Alan Greenspan, past chairman of the Federal Reserve and parent of the American housing bubble just burst. The Greeks, long of poor monetary policy and non-payment of taxes, are about to reap what they've sown over the past decade.

Their economy isn't growing them out of their debt (a debt that now exceeds their total annual economic output), they can't sell more bonds at reasonable rates, and their current bond-holders (Germany and France among them) are demanding extreme reforms, which the Greek people are protesting. Something is going to give, and when it does it'll take out the Greek government, the Greek economy, Eurozone economic policy and, perhaps, the US economy with it.

Portugal, Iceland, Ireland, Greece. The PIIGs. Keep an eye on this, it's going to be huge.