Targeting the Weak Hands Is Easy Money

Let’s face it; this mess is not limited to Greece, Ireland, Portugal, Italy, France, and/or unique to the EU zone. The state of the US union is equally as fragile despite mono-focused analysis of a multidimensional problem. California, New York, Illinois, etc. have seen borrowing costs soar as they attempt to fix their budgetary holes with more debt. When capital finishes its “Euro play”, it will move against the weak hands to force another centralized bailout. Its easy money to press the weak hands, and the local governments will scream “save me” so loud that it will be impossible to ignore.

Headline: Roubini sees Portugal bailout, possibly Spain as well

Portugal will take an international bailout and Spain may be next as Madrid has underestimated the cost of cleaning up Spain's financial system, economist Nouriel Roubini said on Monday.

Greece will eventually have to restructure its debt and a weak growth outlook will prompt central banks, including the European Central Bank, to ease policy further, said Roubini, who is known as Dr. Doom for predicting the credit crisis before 2007. He also warned on Monday that there was still the risk of a double-dip recession in the United States.

Source: finance.yahoo.com