There are riots all over the economically troubled areas of the Eurozone, but for some reason it is not being covered by the media. Here is Russia Today's Max Keiser's coverage:
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Because our financial system is highly leveraged with debt, a major default like Greece will hit the banks hard. If the defaults spread to other Eurozone countries like Portugal, or God forbid Spain, then most European banks will be broke.
From Bloomberg:
Greece could have a contagion effect,” ECB Vice President Vitor Constancio said yesterday. “That’s the reason why we are against any sort of default with haircuts and any form of private-sector event that could lead to a credit event or a rating event.”
The euro has fallen more than 2 percent in the past two days, to $1.4090 at noon in Frankfurt, and the cost of protecting corporate bonds soared to the highest level since January, with credit-default swaps anticipating about a 74 percent chance that Greece won’t pay its debts.
There is a lack of an united front on the debt issue:
Irish Finance Minister Michael Noonan said yesterday that senior bondholders should share in the losses of Anglo Irish Bank Corp. and Irish Nationwide Building Society, reversing a policy of protecting owners of senior securities. The ECB is against imposing losses on investors. President Jean-Claude Trichet said on Feb. 7 that haircuts aren’t part of a plan to reduce Ireland’s debt load.
Will the European Central Bank be able to stop the debt crisis?
[Positive Dennis]