Look, we’re not trying to ruin your morning.
We fully want you to get up, and enjoy the big 4% rally in stocks that seems to be materialising right now. After last week, you deserve it.
But soon we’re going to have to start discussing our own PIIGS — states like California, New York, and Illinois, all of which are in deep financial troubles.
But more importantly, beyond their debt, is that they don’t have their own central banks, which turned out to be Greece’s problem. The central bank distinction is key, as it’s the reason that the UK hasn’t found itself in a fiscal crisis yet.
We’ll be delving more into their situation in the days ahead, but for now a thought experiment: Could you imagine US political leaders staying up all night to craft together an 11th-hour bailout of California? And if you think that’s possible, do you think it’d be possible after November, when Republicans clean up in the election?
Don’t miss: 15 depressing facts about California >