By Nat Goodale | Jun 02, 2010

A straight talk refresher, or how about some refreshing straight talk? Now pay attention, you have to follow real close.

We have Greece with the rioting in the streets and the air force pilots going on strike and the defense minister saying he's "profoundly disappointed."

And why? Because Greece is going down the tubes, whoosh. And they're just the bleeding edge. They have this sovereign debt crisis and all the bank depositors are, like, "I'm outta here."

And all the other European banks are way out on the limb and they're looking down at the dangerous ground. Straight talk for that is over-leveraged. You know what I mean.

And they are some nervous, let me tell you. Because down the pike are Portugal and Spain and the other Maastricht Treaty debt-deficient offenders.

Sound like trouble to you? You bet it does!

Now stay with me here.

We have credit rating downgrades, flawed fiscal policies, junk status debts, depressed growth, "outlooks" on negative watch, rocket-launch prices on default protection, parabolic rises in bond yields, lower long-term counterparty credit ratings, retracement corrections, bearish technical dynamics and early thematic traders, upside breakouts in gold waiting for re-acceleration violations and the critical need for risk management overlays.

You get the picture.

Sounds like a feast to me, a second derivative redemption arc with all the negative fact patterns leading to upward vertical development of the credit default swaps; all the while we've got quantitative easing to stem the infectious contagion.

But, "No problem," the talking heads say -- "Hunky dory and peachy keen," and how about you take out a reverse mortgage so you can go out and blow some cash on that dream vacation -- how about Greece?

Translation: They are in a world of hurt, and it may be coming here!




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