Originally posted by Doug Noland @ http://www.prudentbear.com/index.php/creditbubblebulletinview?art_id=10543 on how *extend and pretend* are the new normal and why Greece could very well be the tip of yet another Lehman Moment.
Isn’t it incredible that the failure of one firm, Lehman Brothers, almost brought down the global financial system? It is equally incredible that, less than three years later, a small country of 11 million has the world teetering on the edge of another systemic crisis. Today’s circumstance is a sad testament both to the instability of the international Credit “system” and to the lessons left unlearned from the previous crisis.
For about 15 months now my analysis has attempted to draw parallels between the initial subprime eruption and last year’s Greek debt crisis. Both were the initial cracks in major Bubbles (“Mortgage/Wall Street Finance” and “Global Government Finance”). These two weakest links – due to their role as the marginal borrower exploiting