Euroland members working through the grief cycle at different rates

In one of Mish's recent posts, a German newspaper writes an open letter to the Greek government basically telling it that it will eventually default on its debt.  Instead of further chastising the Greek government for its out of control spending, the newspaper assures it that there is life after an economic default.  Remember, this is a member of the creditor nation saying this.  When Greece defaults, the Germans who foolishly / greedily loaned them money will have to mark down their bad loans and realize the losses they have been hiding on their books.  The open letter might as well have been to both the Greek government and the German lenders who lent them money.  Sounds to me like at least some on the German side have entered the acceptance stage of this financial crisis as defined by the Kubler-Ross model.

Mish goes on to indicate that the same fate is in store for Ireland, Portugal and Spain because what cannot be repaid will not be repaid.  I think everyone knows this is the case at this point.  If this is true then why is the German newspaper so eager to have Greece default?  People should be asking themselves this question as the defaults begin to pile up.  The reason is very simple:  Most of the money that was loaned was never earned.  It was conjured up from thin air as part of the fractional reserve lending scam.  The losses will mainly affect the population using the money supply, not the con men who have been gaming it.  If lenders had actually worked for the money that they lent out for interest then, trust me, they would not be nearly so unemotional about its pending loss.  The con men running the fractional reserve scam will not lose anything when the defaults occur because they never had any real skin in the game except perhaps their reputations.  Nobody will go to jail and very few will even be singled out for public humiliation.

When the Greeks and the rest of the PIIGS default, more con men will come rushing in with more credit based money that they did not have to earn before loaning out.  Their goal: operation Phoenix.  In other words, start a new debt Ponzi right from within the ashes of the old one that burnt down.  It is totally predictable that this will happen because there is no better business in the world than conjuring up something from thin air and then lending it out for interest which must actually be earned with real labor.  Fractional reserve lending is the ultimate something for nothing scam and too many people are now dependent upon it for it to stop.  Instead of feeding themselves by doing real work, they live big lifestyles by running debt Ponzis.  It's really good work if you can get it.  The only qualifications are that you have to be a crony of those in charge as well as being devoid of any moral substance whatsoever.