Adventure is worthwhile - Aesop

The domino effect

by AlexinCT

Yesterday I discussed the fate of Greece and the collectivist culture that took over nad has gotten them where they are today. Today I will tackle the next likely domino, Portugal. d

Portugal moved towards a political crisis on Thursday night as its finance minister appealed to opposition parties not to defeat the minority Socialist government over a regional finance bill that he said would undermine the country’s international credibility. In a televised address, Fernando Teixeira dos Santos said opposition proposals to allow the Portuguese islands of Madeira and the Azores to increase their debt would have “grave consequences for Portugal’s public accounts” and send “the worst possible message” to financial markets. Fernando Teixeira dos Santos said opposition proposals to allow the Portuguese islands of Madeira and the Azores to increase their debt would send ‘the worst possible message’ to financial markets.

His warning came as Portuguese bonds and shares came under fire for the second day running as concerns over sovereign debt spread from Greece to other high-deficit countries in the eurozone. The Lisbon stock market fell almost 5 per cent on Thursday, the biggest daily fall since November 2008, and bond yields rose to new highs amid doubts over the ability of Portugal to consolidate its public accounts. The cost of insuring Portuguese debt against default also rose to a record high.

Like the economy of Greece, that of Portugal is living on borrowed time. The same problems that are threatening to bring down Greece are doing the same in Portugal. Only unlike the current socialist Greek government that has realized the fit has hit the shan, and is doing something to try and delay the inevitable, the current socialist government of Portugal is being accused of manufacturing a crisis to prevent their parliament, which is dominated by a coalition that actually wants to make change of direction and avoid the inevitable and complete collapse of the Portuguese house of cards, from doing anything.

The world is watching and reacting to the Greek and Portuguese meltdown going on. And I am sure that what is happening here in the US is influencing the run as well.

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