Eurocrats Carry On Up The Khyber, Determined and Delusional, says Farage

http://youtu.be/tivRCQqBFGA

ISDA Says Greece In Default, CDS Will Trigger

In the most predictable event category: the ISDA finally declared Greece has defaulted.  The market's ho-hum response is also predictable.  But then again, markets yawned in 2008 initially.

http://www.forbes.com/sites/afontevecchia/2012/03/09/on-greece-defaults-and-the-future-of-derivatives/

In a Greek Default, Higher Risk for Money Market Funds

This is why the powers-that-be fear a Greek default so much.  Remember the post-Lehman liquidity crisis that brought on the 2008 financial meltdown? 

http://mobile.nytimes.com/article?a=810271&f=23

Money market funds have long been a popular haven for conservative investors, but they could become one way that the tremors of the financial crisis in Greece touch the pocketbooks of Americans - about 50 million of them.

For years, the funds in the United States have taken investors' money and lent it out where they can get the best returns. European banks have been a target lately - so much so that about 50 percent of the funds' $1.6 trillion in prime money market assets is in the debt of European banks.

Now that Europe is struggling to contain its debt crisis, these safe investments could be a tad less safe, especially if Greece's Parliament votes down a set of deeply unpopular austerity measures Wednesday morning.

While any losses on money market funds could be minimal, especially compared with the turmoil that could ensue in stock and bond markets, the possible effect on this corner of the financial markets shows how the ripple effects could reach far and wide if Europe cannot resolve its debt crisis. "A lot of them are exposed to a risk of a blowup somewhere in Europe," René M. Stulz, professor of banking and monetary economics at Ohio State University, said about money market funds. "It does present systemic risk."

Some experts and the funds themselves play down the risks, expressing confidence in the underlying safety of the European banks' debt that they own.

A primary fear is that if a European bank indebted to the funds is weakened in the crisis, then it might have a hard time repaying its loans. But even the perception of trouble could, in a worse case, cause financial markets to seize up and send investors rushing to withdraw money. That is what happened after the collapse of Lehman Brothers in 2008 hit one fund that owned Lehman debt, the Reserve Primary Fund, causing a huge run on all funds.

While the author is correct that sovereign debt defaults will have a crippling effect on our global financial system, the most dangerous and biggest systemic risks are unquantifiable, due to the proliferation of over-the-counter, non-transparent trading of credit default swaps.  Due to the high-leverage nature of said cds', when and if peripheral Euro countries default, the collapse of the credit markets will be catastrophic.

Translation?  Economies will tumble, commerce would freeze up, and a trip to the local ATM or bank teller would prove futile.  In other words, good luck.

Greece Deputy PM Warns Of Tanks In The Streets, Mass Suicides, If Second Bailout Voted Down By Greek Parliament

http://www.zerohedge.com/article/greece-deputy-pm-warns-tanks-streets-mass-suicides-if-second-bailout-voted-down-greek-parlia

With just days left until the crucial vote on passing the Greek mid-term austerity package, the assured destruction rhetoric used by the Greek status quo has hit fever pitch. Just to make sure the message is not lost on the broader population that Europe's banks will not admit defeat in a vote that could end the kleptocratic cartel's hegemony for ever, Greece's Deputy Prime Minister Theodoros Pangalos has blasted suggestions that it would be better for his country to abandon the euro and return to the drachma as an "immense stupidity". He didn't stop there. For dramatic impact, the Greek vice PM also said that the country would devolve into complete anarchy, with tanks roaming the streets, a population on the verge of civil war, with mass suicides, just for dramatic impact, should bankers not get their way. More or less in line with the Hank Paulson script that is regurgitated every few years when the Ponzi system is on the verge of imploding yet again.

How to insure your wealth against a Greek default

http://www.moneyweek.com/news-and-charts/economics/europe/how-to-insure-your-wealth-against-a-greek-default-54222

Bernanke Lies Half Life Reduced To Under One Day As Aflac Scrambling To Shore Up Liquidity On European Exposure

http://www.zerohedge.com/article/bernanke-lies-half-life-reduced-under-one-day-aflac-scrambling-shore-liquidity-european-expo

Yesterday during his press conference, the Chairman uttered his latest lie: "We have asked the banks to essentially do stress tests and ask, looking at all their positions, all their hedges, what would the effect on their capital be if -- if Greece defaulted...The answer is that the effects are very small.”

This is the same Fed Chairman who said the subprime mortgage crisis would not spill over into the overall mortgage market, that housing was in fine shape, that the auto companies were fine, and that the economy was in great shape--in 2006.

In other words, if you still believe this pathological liar, you deserve to lose all your money.

Derivatives Cloud the Possible Fallout From a Greek Default

All is well.  They'll just print more currency to paper over any insolvency problems. /denial

Get ready for the next blow up.  And watch the contagion sweep across the Euro zone and cross the Atlantic. 

http://www.nytimes.com/2011/06/23/business/global/23swaps.html?_r=1