DAX Tumbling, Greece Facing "Hard Default"

The DAX - the German exchange - has fallen 3.65% so far today. After losing 3.4% on Friday. And an unidentified senior IMF analyst warns that Greece will soon face an uncontrolled "hard default" -

According to a senior IMF economist who wasn’t identified, Greece will likely face a “hard default” well before March 2012.

It could happen during 2011, and perhaps after the current round of negotiations. This acknowledgement from someone very close to the matter in a body that is heavily involved in the bailout, is quite worrying.

The current talks are around the first bailout, agreed more than a year ago. Greece definitely missed its targets. The EU /IMF delegation suspended its visit to Greece after discovering that the deficit will be higher. They are expecting fresh steps to be taken by the Greek government.

The Greek government says any more steps will only deepen the recession and make things even worse. The debt trap is quite clear at this stage.

Representatives of the International Monetary Fund, European Central Bank and European Commission left Greece without reaching any agreement, since the Greek government has failed to meet the commitments promised at the time of the first bailout.

UPDATE (RELIAPUNDIT):

European stock losses deepened on Monday afternoon, as Deutsche Bank AG and several other banks tumbled after being named in a U.S. mortgage-related lawsuit, while a defeat for the party of Germany’s chancellor in regional elections weighed on already downbeat sentiment.

NOTE THAT THE TWO LEAD REASONS FOR TODAY'S CRASH ARE UNPOPULARITY FOR MERKEL AND OBAMA'S LAWSUIT AGAINST BANKS.

MERKEL IS UNPOPULAR BECAUSE SHE HAS BEEN TOO ACCOMMODATING TO THE EUSSR-FOLKS WHO ESSENTIALLY WANT THE PRODUCTIVE GERMAN WORKER TO UNDERWRITE "EUROBONDS".

AND OBAMA'S WAR AGAINST CAPITALISM ISN'T A POSITIVE THING FOR ER, UM... CAPITALISM EITHER.

IOW: LEFTISM IS DRIVING DOWN THE MARKETS.

SIGH.

YOU KNOW WHAT IS EVEN MORE AGGRAVATING?

IT WAS LEFTISM THAT PUT THE GLOBAL ECONOMY IN THIS POSITION TO BEGIN WITH!

THE SOVEREIGN DEBTS OF GREECE AND IRELAND AND SPAIN AND ITALY ARE ALL IN SO HORRENDOUS SHAPE BECAUSE THEY SPENT TOO DAMN MUCH MONEY OF INEFFECTIVE WASTEFUL AND CORRUPT SOCIALIST PROGRAMS! (I KNOW: THAT'S REDUNDANT!)

NONE - REPEAT - NONE OF THE EUROPEAN NATIONS WITH HORRIBLE DEBT PROBLEMS GOT THEIR BECAUSE OF SPENDING TOO MUCH ON DEFENSE OR "UN-FUNDED WARS".

IT'S THE SOCIALISM, STUPID!

SIGH.

THE GLOBAL ECONOMY WON'T IMPROVE UNTIL WE END DECADES OF UNAFFORDABLE IDIOTIC INEFFICIENT SOCIALIST PROGRAMS.

AND THE SOONER THE BETTER!

Update:

The DAX is down 5.28% for the day. It was the hardest hit European exchange. The CAC 40 is down 4.73% and the FTSE is down 3.58%.

The DAX closed at 7400 on July 7th, and is now at 5,246 - that's a 30% decline in 2 months. In the same time frame, the Dow has dropped from 12,719 to 11,240 - "only" 12% off.

The European economy can't bear any more bailouts.