California and Greek defaults = Inevitable

[Boomhauer]

California and Greece sign austerity measures today. Neither designed to address their crippling financial fundamentals, but to maintain them as satus quo until the inevitable. Both are merely digging a deeper hole, excused by the requirement and dream of unobtainable economic productivity, but will further weaken their struggling economies and raise unemployment, while not touching pensions, pork, political corruption or fiscal sanity.

For Greece, taking out more loans to cover ones they cannot pay is a 3month bandaid until another +$100bil they will never pay arrives, or they default. For California, each year they overstate income while using accounting gimmicks to push the mounting wave of bankruptcy back a few months. Eventually, both will have to declare bankruptcy to get out of debt and pensions. It's not a matter of if. It's just a matter of when.

California is the 9th largest economy on Earth (about $1.816 trillion this year) and accounts for a bit over 13% of the US economy. Greece is much smaller (about the same as Massachusetts), but there's significant level of debt carried by other EU nations. When Greece falls, it will likely trigger Ireland, Portugal and Spain to follow suit. When Caifornia falls, a handful of other states will probably follow with strategic defaults.

List of annual GDP estimates (Feb 2011 in trillions)
#1 - USA $13.86
#2 - China $7.043
#3 - Japan $4.305
#4 - India $2.965
#5 - Germany $2.833
#6 - Britain $2.147
#7 - Russia $2.076
#8 - France $2.067
#9 - Brazil $1.838
California $1.816
#10 - Italy $1.800

[L.A. BRONCOS FAN]

^

Looks like somebody got his Fox talking points and copied/pasted them here.

Meanwhile, here in reality, the Greek economy was brought down by the same economic weapons of mass destruction created by the same bankster slime bags who brought down the U.S. economy.

[Boomhauer]

Looks like somebody got his Fox talking points and copied/pasted them here. Meanwhile, here in reality, the Greek economy was brought down by the same economic weapons of mass destruction created by the same bankster slime bags who brought down the U.S. economy.

Yes LA-BF'er, it's all conspiracies from corporations, "rightards", evil systems and whatever else makes you tremble and fall in line for a way out. In fact I, like you, are a hopelessly brainwashed goose stepper, but out to get you. Boogey, boogey, boo, we're coming for you, clown. Better get back in your padded room before security notices you snuck out to use the interwebz.
:clown:

[BroncsRule]

Yes LA-BF'er, it's all conspiracies from corporations, "rightards", evil systems and whatever else makes you tremble and fall in line for a way out. In fact I, like you, are a hopelessly brainwashed goose stepper, but out to get you. Boogey, boogey, boo, we're coming for you, clown. Better get back in your padded room before security notices you snuck out to use the interwebz.
:clown:

There's no conspiracy to it. the banksters f#@ked us right out in the bright sunshine.

Right in front of God, Ben Franklin, and everybody.

[alkemical]

I don't really know if there's a way out of this, if we keep doing things that are continuing to fail us.

[BroncsRule]

^

Looks like somebody got his Fox talking points and copied/pasted them here.

Meanwhile, here in reality, the Greek economy was brought down by the same economic weapons of mass destruction created by the same bankster slime bags who brought down the U.S. economy.

and BIF - the OP isn't really about "why", but rather "what".

Namely, theat "here in reality" Greece and California are going to default on their debt.

And there's nothing anyone can do about it