Greece looks critical!
A potential for Greece to default or be bailed out has been the topic of financial news for many weeks, yet today things have become dramatic. As ZeroHedge correctly points out, the Greek curve has gone ape feces and I am putting it kindly. Short term rates jumped to 21%!
This essentially means that in order for Greece to continue "surviving" they will need to sell more treasuries and doing so with rates in the stratosphere will make this a very difficult task. Yet, the stock market is up and financial stocks are responding as if this is the best news in the world. What gives?
My hunch is that the Greece fire is going to be snuffed out this weekend with an officially announced bailout. Perhaps IMF and the Eurozone were waiting for this thing to blow over or perhaps for Greece to jump ship on their own accord, but now their hand is forced. Even if we were to accept that the global markets have waved bye-bye to sanity a long time ago, action this morning really bakes the cake. It would mean that someone knows...
Hell, there has been so much manipulation in this market over the past year that insider trading on the magnitude of an international bailout is more than plausible. That being said, there is one question.
1) If Greece is indeed bailed out, what happens to the rest of the PIIGS? As far as we could tell from here the situation in Portugal, Italy and Spain has not much improved. If they fall into the same situation as Greece, then where is the capital to bail out all these countries?
I suspect we will hear something in the next few days, the situation is dramatic.
Exit thought: If the Eurozone and US Funded IMF is drowning in debt, how can Greece be bailed out? It's like if your brother came to you asking for $1,000 dollars because he owns his loan shark money and you take a loan of $1,000 when you already own your loan shark $10,000 and give it to your brother. Problem solved!
This is nothing more than debt musical chairs. Stupid beyond belief.
This essentially means that in order for Greece to continue "surviving" they will need to sell more treasuries and doing so with rates in the stratosphere will make this a very difficult task. Yet, the stock market is up and financial stocks are responding as if this is the best news in the world. What gives?
My hunch is that the Greece fire is going to be snuffed out this weekend with an officially announced bailout. Perhaps IMF and the Eurozone were waiting for this thing to blow over or perhaps for Greece to jump ship on their own accord, but now their hand is forced. Even if we were to accept that the global markets have waved bye-bye to sanity a long time ago, action this morning really bakes the cake. It would mean that someone knows...
Hell, there has been so much manipulation in this market over the past year that insider trading on the magnitude of an international bailout is more than plausible. That being said, there is one question.
1) If Greece is indeed bailed out, what happens to the rest of the PIIGS? As far as we could tell from here the situation in Portugal, Italy and Spain has not much improved. If they fall into the same situation as Greece, then where is the capital to bail out all these countries?
I suspect we will hear something in the next few days, the situation is dramatic.
Exit thought: If the Eurozone and US Funded IMF is drowning in debt, how can Greece be bailed out? It's like if your brother came to you asking for $1,000 dollars because he owns his loan shark money and you take a loan of $1,000 when you already own your loan shark $10,000 and give it to your brother. Problem solved!
This is nothing more than debt musical chairs. Stupid beyond belief.
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