Yesterday, Greece managed to sell $ 6.85 billion of ten year notes and an eye-popping 6.3 % coupon. Good start!
Meanwhile, all the major unions in Greece are on strike. They think it is terribly unfair that bondholders do not provide the good life for Greek citizens.
What's next? Greece has another $ 30 billion coming to market in the next few weeks and nearly $ 70 billion over the course of the year. All of this to support retirements at the earliest ages in the world, free medical care for all, and a shrinking and government bureaucratized private sector that now employs a minority of working (?) Greeks. Wonder why the economy has collapsed?
Is Obama watching? This is our future.
But, before the US gets the front page headlines, let's watch developments in Spain, Portugal, Italy. On another stage, watch the vote in Iceland later this week, where Icelanders refuse to pay back the Brits for bailing out (all of) their banks.
The Entitlement World is blowing up. Meanwhile, the Obama folks are urging America to get into the entitlement lead, as our national debt is blowing off the roof. If Obama gets his way, we could be Greece. Greece is one of the countries that, according to Obama, can afford universal health care. Yep, looks like a plan.
We can pattern ourselves after the Greeks. If they can live high without paying for it, why can't we?
Stay tuned. The unraveling of Entitlement World is just beginning.
