Hungary Is Next in the Barrel;
It's Getting Crowded in There
June 5, 2010 (EIRNS)This release was issued today by the Lyndon LaRouche Political Action Committee.
Five days after taking office on May 29, Hungary's new Prime Minister announced that the outgoing Socialist government had lied about the extent of the budget deficit, and that the country was facing a "very grave situation." A spokesman for Prime Minister Viktor Orban even raised the specter of a sovereign debt default, saying such a possibility is "not an exaggeration."
The markets responded with predictable hysteria, driving the Hungarian forint through the floor; raising spreads on Hungarian, Greek, Spanish, and other bonds; and wondering nervously, as Deutsche Bank put it in a letter to its customers: "Are we on the brink of something more serious?"
Is the sky blue?
So what has been foolishly referred to as the "Greek" sovereign debt crisis-Lyndon LaRouche said all along it was a meltdown of London's entire eurozone banking system-has now become the Greece-Spain-Portugal-U.K.-Italy-France-and-last-but-not-least-Hungary crisis. It's time to put the whole mess through Glass-Steagall bankruptcy reorganization.