Malinvestments

Sovereign Debt Orgy

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The New York Times has created a fascinating graph outlining the debt structure of the southern European "PIIGS." What's most striking is just incestuous the whole mess is: everyone owes everyone money -- and everyone owes Germany big time.

And it can't be good that the debt structure forms an ominous pentagram!  

[ht: Daily Reckoning]

The situation manifests itself in real life in scenes such as these. Reportedly,  a hundred thousand Greeks have taken to the streets, and three employees of the Marfin Bank have been murdered.

How long till we experience similar riots in our debt-ridden nation? My guess is that if yields on short-term Treasury bonds go up above 10 percent, it won't be long until there's blood in the streets.