Europeans Dig Themselves Deeper

The Greeks vote today, and yet nobody in Europe wants to face the truth and do the right thing:

Hussman Funds - Weekly Market Comment: The Heart of the Matter - June 11, 2012: " . . . what is really happening is that a continent that is already excessively in debt is promising funds so that Spain can increase its government debt, and then needlessly protect the bondholders of Spanish banks, who should be subject to orderly restructuring instead. . . . The only way Spain could make a more explicit gift to bank bondholders would be to include wrapping paper and a bow. If it seems as if the global economy has learned nothing, it is because evidently the global economy has learned nothing. The right thing to do, again, is to take receivership of insolvent banks and wipe out the stock and subordinated debt, using the borrowed funds to protect depositors in the event that the losses run deep enough to eat through the intervening layers of liabilities (which is doubtful) . . . "

At some point, something's got to give--until then, caveat emptor.

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