| The possibility of a Greek exit from the Eurozone is escalating again. The newly elected government won on a promise to end austerity; however, there were stories in the media almost immediately suggesting that the new Prime Minster would back down. Despite being refuted at once, the mere suggestion was all that was needed for a strong rally in stocks. Over the weekend, the opposite has been reported: The Greek government seems prepared to leave the Euro if a "new deal" isn't arraigned. Moreover, it is suggesting that other governments will do the same once Greece is gone. From Reuters: "The euro is fragile, it's like building a castle of cards, if you take out the Greek card the others will collapse." Varoufakis said according to an Italian transcript of the interview released by RAI ahead of broadcast. The euro zone faces a risk of fragmentation and "de-construction" unless it faces up to the fact that Greece, and not only Greece, is unable to pay back its debt under the current terms, Varoufakis said. "I would warn anyone who is considering strategically amputating Greece from Europe because this is very dangerous," he said. "Who will be next after us? Portugal? What will happen when Italy discovers it is impossible to remain inside the straitjacket of austerity?" "Italian officials, I can't tell you from which big institution, approached me to tell me they backed us but they can't tell the truth because Italy also risks bankruptcy and they are afraid of the reaction from Germany," he said. "Let's face it, Italy's debt situation is unsustainable," he added, a comment that drew a sharp response from Italian Economy Minister Pier Carlo Padoan, who said in a tweet that Italy's debt was "solid and sustainable." Varoufakis's remarks were "out of place", Padoan said, adding that Italy was working for a European solution to Greece's problems, which requires "mutual trust". Italy's public debt is the largest in the euro zone after Greece's and Italian bond yields surged in 2011 at the height of the euro zone crisis. They have since fallen steeply and have so far come under little pressure from the renewed tensions in Greece. Because of this, this week's market should see some extra volatility. But unlike in year's past when the Eurozone gave Greece whatever amount it needed to stay in the group because it feared financial Armageddon, there is something different. The ECB recently announced its own massive blank check of QE, which very well may be what keeps the markets from going completely berserk. Trade well and follow the trend, not the perma-bull OR perma-bear "experts." Behold the age of infinite moral hazard! On April 2nd, 2009 CONgress forced FASB to suspend rule 157 in favor of deceitful accounting for the TBTF banking mafia. | 
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Keep a civil tongue.