There were many during the financial crisis of 2008-2009, second guessing the drop in the stock market and taking on further risk than anticipated. But the threat in Greece is real. Greece itself, has lent the hand in the early beginnings of the 2007-2008 credit-crunch, allowing malfeasant corporate and government borrowing practices to spread across the European Union as was customary here in the United States. The sovereign debt crisis out and about the EU now in 2010, shows there is no way central governments around the globe can allow irresponsible lending practice to go unfettered, while there is still no measure for uncertainty. As the market shed more than 50% of its gain the last 200 years, there were portfolio managers on a shopping spree for “cheap stocks” and “green-shoots”, that would gain in intrinsic value in the weeks to come as stock-markets began the uptrend in capital gains thereafter, worldwide. Greek contagion now continues to spread across the European Union, adding further volatility to a crumbling business model where unemployment has hit double-digits in many of the world’s developed nations, as a result of Lehman Brothers and Fannie Mae offloading their risk by marking to market huge profit and inflating the U.S. economy, as conventional.
May 6, 2010, signed the day of the “flash-crash”. As did on Friday March 14, 2008, the threat of sovereign debt default delivered onto the marketplace the smackdown of a lifetime. Just as 11:00am hinted on Friday morning of March 14, 2008, Bear Stearns common stock dropped to $32.61 on spot trading, as the Fed accordingly set out a press release claiming to step in and aid the injured investment bank by providing liquidity toward Bear Stearns along the lines of opening the Fed-Window as liquidity all of a sudden dried up for Bear Stearns in less than 24 hours. Greek contagion has now let onto the marketplace the exact fury and swift execution, post 2007-2008, the credit crunch has deliberately bolstered on the financial markets as a whole. On May 10, 2010, the U.S. Federal Reserve Bank in Washington D.C., reopened its currency swap facilities with other major central banks to help ease market strains in Europe. The Fed revived facilities established during the 2007-2008 financial crisis with the European Central Bank, the bank of Canada and England, and the Swiss National Bank. The Bank of Japan said it would also…
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