Europe oh Europe Where Dist Thou Go Wrong + Linky Goodness

CAUTION (Many parentheses ahead).

So for everyone who thought that the ~$750 Billion bailout of the Euro dominated countries would solve the crisis, well, no it didn't.  It kind of reminds me of the beginning of WWI, but without all the killing, when Hungary says its debt is greater than stated and so France's debt goes all illiquid (no one wants to buy the bonds) on us.  Here is a great synopsis of what is happening and what could happen.

So Europe goes down in theoretical flames (or maybe real ones.  Who knows, just look back at their history.), and Europe is the biggest buyer of China's goods (nope, the good 'ole USA is numero dos) so what happens to China when the ein'st and zwie'st (1st and 2nd in kind of German speak) markets are extremely soft?  China already has the biggest property bubble ever seen, not counting the one before or after.  It's all the rage to short China and Europe now so cheap opportunities are most likely far gone, but with a little work and luck there are things that can be done.

General links (may not include anything to do with finance)

-   MetalJockey is back baby!  Now with Zambian goodness.

-   We just need to keep counting everyone for full employment.  Here and here.

-   How to live in a house for free for 1 to 2 years.  Here and here.  Since I actually have equity in my abode, I would most likely be foreclosed upon quite quickly.

The last set of links is interesting for a number of reasons I won't get into because most likely you didn't click on the links.  One interesting reason I will discuss is the fact of what happens to the property taxes or lack there of.  Past due taxes are first in line for repayment when a house is sold out of foreclosure, short sell, etc.  Local Governments finance the past due taxes by selling the INDIVIDUAL tax lien to a private entity.  Usually the bidding starts at an 18% return and goes down (the return, not the price, the price goes up) from there.  So lets say that I'm Joe Sixpack who stopped paying my $2,000 month mortgage one year ago.  If I didn't spend the money on six packs then I would have $24,000 (ZIRP world, no interest blah, blah, blah).  Let's say the bank didn't pay the property taxes due to the lack of me making payments (why lose more money by paying $ out to another entity when you can transfer the risk to them for free).  I show up on the courthouse steps with five grand in my pocket and buy my tax lien for a 15% return.  WooHoo!!!!  I just made 15% (~$750) on five grand using what is technically the banks money (leverage baby) while living rent free in my (ok actually the lenders) house.  Now time value of money comes into play here because of the lack of a known time frame from buying the tax lien to the actual foreclosure sell, but really within a ZIRP world does time value of money really matter to a small individual.