The First Domino fell when Greek negotiators pulled out of the bailout talks and the world markets reacted badly, seeing losses almost across the board with Australia hit hard and fast with $35 billion wiped from the stock market. According to IG market strategist Evan Lucas, Australia has seen this loss despite having "little direct exposure to Greece."
“It’s a very tough time and unfortunately nothing will be spared, except perhaps gold.” The slide was spread across the market, with banks, miners, retailers, healthcare providers and telcos all down sharply. Gold stocks nudged ahead as investors sought out safe-haven investments.
FXTM chief market analyst Jameel Ahmad notes that "Greece is the weakest member of the euro." Yet is is able to "hammer" the world markets to the extent that the German DAX, French CAC, Britain's FTSE and the Portugal stock market all saw losses, with European bank stocks particularly hard hit. Spain's Banco Santander (BCDRF) gave up 5.7% in early trading, while French bank Credit Agricole (CRARF) lost 6.7%. (Source - Money CNN)
Topping off economic collapse news, we now see that Puerto Rico "has decided that the island cannot pay back more than $70 billion in debt," as reported by Washington Post on June 28, 2015.
The governor of Puerto Rico has decided that the island cannot pay back more than $70 billion in debt, setting up an unprecedented financial crisis that could rock the municipal bond market and lead to higher borrowing costs for governments across the United States.
Puerto Rico’s move could roil financial markets already dealing with the turmoil of the renewed debt crisis in Greece. It also raises questions about the once-staid municipal bond market, which states and cities count on to pay upfront costs for public improvements such as roads, parks and hospitals.
Dr. Paul Craig Roberts who was the assistant secretary of the treasury for economic policy in the Reagan administration was interviewed by Shadow of Truth (2nd video below) where at approximately the 7:20 minute mark he discusses what Greece should do, stating they should default and accept Russia's help, after which he says Italy and Spain will follow, destroying the Euro and NATO along with it. SoT titled that interview "TPP - Omens The West Is Collapsing."
On June 28, 2015 the Bank of International Settlements determined that "central banks have backed themselves into a corner," and warned that "interest rates have now been so low for so long that central banks are unequipped to fight the next crises."
The world will be unable to fight the next global financial crash as central banks have used up their ammunition trying to tackle the last crises, the Bank of International Settlements has warned.
In the first video below, trader Gregory Mannarino, who for the record has been eerily accurate in predicting what we are seeing right now, to the day, believes some type of can-kicking event will take place, allowing markets a very short rally before hitting the death spiral.