"Greece is Doomed"

Now...before I post this headline I want you to remember that the Lord didn't give us a spirit of fear...so we are NOT supposed to fear all the tremblings, tumbling, and bumblings that are taking place all over the world.  We are NOT supposed to fear because we are to have faith that the Lord will care for us and our eternal souls.  Also PLEASE REMEMBER...sometimes He cares for us by REMOVING us from this life and transitioning us directly to glory.

Isaiah 57:1  "The righteous perish, and no one ponders it in his heart; devout men are taken away, and no one understands that the righteous are taken away to be spared from evil." 

With that being said, check out this headline from today;

In Case You Still Don't Get It, Here's Why A Greek Default Should Put Fear In Your Heart

More importantly overseas, it (Greek default) could cause borrowing rates for Portugal and Italy to jump, pushing those much larger countries closer to defaults of their own.

That's only the beginning. A Greek default could unleash a host of larger problems. Some are already anticipated while others are likely to blindside even the closest observers, says Nick Colas, chief market strategist at ConvergEx Group. "In any complex system, you're going to have unintended consequences," he says.

He compares it to the collapse of Lehman Brothers: Analysts saw it coming, but the fallout in still caught them by surprise. A money market mutual fund found that it couldn't redeem its customers' money. Money market funds, which many considered as safe as savings accounts, suddenly looked suspect until the Federal Reserve backed them up.

At a conference on sovereign debt this week in New York, Steve Hanke, professor of economics at Johns Hopkins University, predicted that even commodity prices would plunge in response to a messy Greek default.

If Greece goes under, traders seeking safety would immediately sell euros and buy dollars, Hanke said. The dollar would soar and prices for commodities like oil and wheat, which are bought and sold in dollars around the world, would collapse. A single dollar would buy much more oil or wheat.

"If the bomb is set off by Greece, commodity prices will collapse," Hanke said.

Hanke, who has advised governments around the world on managing their currencies, argued that Greece appears bound to collapse under its debts as its economy shrinks. "Greece is doomed," he said.

To Colas, the deepest concern isn't how the S&P 500 reacts or whether the dollar rises if Greece drops the European currency. It's the possibility for panic, especially a run on European banks.

What if people across France and Germany crowd into banks to pull their deposits? Banks, after all, are some of the largest buyers of government debt.

"Human emotions can drive things off the rails," Colas says.

Read more: http://www.businessinsider.com/experts-terrified-by-greece-debt-problems-2012-1?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+TheMoneyGame+%28The+Money+Game%29&utm_content=Google+Reader#ixzz1l4M6gEvy

What?!?!  Human emotions can drive things off the rails?!?!  What does that even mean?!?!

What it means is that the entire system is now based on faith, confidence and good feelings.  If people get all emotional and start to have fear and bad feelings...which could lead to more panic and even worse feelings....then the whole GLOBAL FINANCIAL TRAIN could come off the rails.

I don't need to tell you that when a train leaves the rails...it creates an awful mess.