Greece Default Imminent
Greece will default on its debt—the only question is how. Either its lenders will accept "voluntary" rollovers or risk an economic collapse similar to Lehman Brothers in 2008.
What's the Latest Development?
The Greek government recently passed austerity measures to cut government spending during a 48-hour general strike. They did so in order to receive another round of bailout funds (loans to be repaid with interest) from the Eurozone (French and German banks). In the short term, it will be nearly impossible for Greece to pay its creditors. The most likely scenario, unless Europe has a suicide wish, is for creditors to renegotiate debt contracts and accept payment at a later date. The alternative would be a forced-default which could put the entire European currency at risk.
What's the Big Idea?
"It isn't the consequences for Greece of a Lehman-type 'credit event' that worry the central bankers and governments: the risk of 'contagion', as they call it, throughout the Eurozone is what preoccupies them. The euro was not designed to default, so when Greece does, other European countries who have had to ask for non-bailout bailouts—Ireland and Portugal—will have their ability to repay their debts questioned. If one or other of them undergoes a 'rollover', or 'restructuring', or 'rescheduling' of its debt—all polite words for default—the next country in line will be Spain, and that is where everything changes."
Firefighters in California are still struggling to contain several wildfires nearly one week after they broke out.
- Hundreds of people are still missing after three wildfires spread across Northern and Southern California last week.
- 48 of the 50 deaths occurred after the Camp Fire blazed through the town of Paradise, north of Sacramento.
- On Tuesday night, a fourth wildfire broke out, though it's mostly contained.
We know the dangers of too little sleep. Now for the other side of the story.
- Western University researchers found that sleeping over eight hours per night results in cognitive decline.
- Oversleepers suffer similar difficulties on certain cognitive tests as those who sleep under seven hours.
- Not all the news is bad: One night of oversleeping results in a cognitive boost.
Protected animals are feared to be headed for the black market.
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