Thursday, July 21, 2011
More Can Kicking in Greece
Extending more credit lines, accepting selective default at the ECB who will now accept toxic Greek debt after restructuring. Of course they were going to do it, they aren't going to shoot themselves in the face. They are not getting ahead of the problem, they are putting band aids and the market will eventually sniff this out. In the meantime, shorts are squeezed but they didn't do triage. They are putting their resources towards saving the guy who will die anyway instead of those who still have a chance to live. Expecting first half weakness today on this Greek Gap Up.
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6 comments:
basically trying to manage a full default without calling it one
"Saving Private Greece". Let it die already. Market would rally huge if they let Greece die and say they will buy up Spanish and Italian bonds.
What's the call MarketOwl? Do you think 2nd half weakness or we keep squeezing away?
The hidden message in the euro news today is crude oil will rise on further bailouts. On top of that is a horrific Chinese PMI on rising costs. The market is usually 24 hours dumb and may need time to digest this. They will eventually.
I think we've made the gains for the day, but I don't see it falling either. Probably plateau at this level for the rest of the day.
If markets rise when countries partially default like Greece maybe all nations should partially default.
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