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Why Greece Matters (To Even The Most Small-Minded US Equity Manager)
Via Bloomberg's Richard Breslow,
Yesterday, the markets looked down the barrel of bad news and concluded that the gun was not yet loaded. The conclusion was reached that the glass remains at least half full...
A day that ran red through two time zones of death by a thousand cuts of unsettling news bites turned decidedly green as North America came in.
The fund industry has been raising cash at a very quick rate. Prudent if they believe things are going to get worse quickly. If markets stabilize or rise, this cushion suddenly feels like unproductive weight which will just lead to yet another period of under performance to their benchmarks
Interestingly enough, the market that seemed to react quickest and earliest yesterday was India’s Sensex Index. The morning meme was a horrible export number, red equities the world over, weighing further on this underperforming index
Then the tide of sentiment began to change among market participants. Yes, the FOMC is due but nothing is imminent and how scary can it be? Greece, well that isn’t for today, they have a little time to sort it out. Inflation, yes it’s been intractable but look at those sheets of rain. And indeed, with apologies to Eric Clapton, the love did rain down on the market and buy orders flooded in. Today’s headlines now read “India’s Sensex Headed for Longest Stretch of Gains in Two Months”
Computers all over the world must have been asking (in ones and naughts) what do they know that I need to know? The answer was I should put some of this cash back to work. The band, after all, is still playing...
The Sensex example is an important one, as looking at only a few assets in these very global markets risks missing the big picture and what might leap up to affect your positions. You can be sure the correlation matrices in those computers didn’t miss it
The Greece saga continues.
This is a story that does not deserve to be derided by whines of “I’m sick of reading about Greece” and “If it weren’t for Greece”, blah, blah, blah. The next B level economic number that HFT traders can jump on is not more interesting nor important. This is a Western democracy, member of NATO and the euro zone in the throes of social and economic revolution. Their problems go to the very heart of EU problem resolution ability and, in the best case scenario, could lead to the fiscal union measures that finally make the EUR truly viable.
On the other hand, it could all go terribly pear shaped, threatening political stability and the balance of power on the continent.
Today is the Fed’s day, but don’t dismiss this story for small mindedness.
As for the Fed, given the players calling the shots, I think, like most, cautiously upbeat, data dependent, slow and careful, but leaving the September option open. And markets will have little reason to quake.
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If a single debt domino falls, there are 100 more to fall in this world of debt.
The hegemon of this world will not appreciate this revolt by its debt slaves.
Tsipras Slams "Criminal" IMF In Defiant Speechhttp://www.zerohedge.com/news/2015-06-16/tsipras-slams-criminal-imf-defi...
The IMF Itself Is a Criminal OrganizationThe IMF’s official job sounds simple and attractive. It is supposedly there to ensure poor countries don’t fall into debt, and if they do, to lift them out with loans and economic expertise. It is presented as the poor world’s best friend and guardian. But beyond the rhetoric, the IMF was designed to be dominated by a handful of rich countries – and, more specifically, by their bankers and financial speculators. The IMF works in their interests, every step of the way.
http://www.realclearworld.com/2011/06/03/the_imf_itself_is_a_criminal_or...
The words "global economy" are merely words that the sellers use to convince the sheep to buy. Too bad that they actually mean something and everybody gets to play when it turns to shit......
This will all get real fun when the algo-bots start committing suicide....or suiciding each other.
How do you say "nailgun" in Binary Code? Simple:
01101110 01100001 01101001 01101100 01100111 01110101 01101110
;-)
I think of it as battle programming, because at a certain point the algo's will be programmed to screw other trading houses and the blood will run deep....
"This is a story that does not deserve to be derided by whines of “I’m sick of reading about Greece”"
If I didn't know better I'd swear that was directed at me.
Throw those pathetic Greek deadbeats out of Europe already.
Correction: Throw those pathetic bankster deadbeats out of humanity already.
The big problem was that aging demographically moribund big economies such as Germany didn't have enough productive investmenta to make at home with enough return to make their pensions and insurance schemes happen. So they lent to foreign buyers of German goods and services in a desperate attempt to bootstrap their way out of the impending great comeuppance for a few more years, making things worse, of course. The Euro was a means of pretending they could lend massively to southern European entities at low risk and reasonable interest rates. And so they did. And here we are. Don't blame the bankers. Blame the childless Germans' dead-ender depressive hedonism and above all their trust in the state. They aren't just running out of other people'so money. They are running out of other people. Greece even more so than Germany. So it was beyond stupid to lend in such size to them.
But, but the article insisted they are important to NATO and Western Democracy! They must be a military, demographic and economic powerhouse.
Dude, who's paying you? Srsly... go bark at your own yard
Its the voice of Radio Wolfenstein, from under the Führerbunker.
Greece matters because the success or failure of any ponzi scheme depends upon the continued participation of its captives.
Greece is a festering boil of the black plague of central banking that started infecting humanity 100 years ago.
Unfortunately, just one of many, with many more to come....
I dunno what the take should be on a read of the Sensex. As I understand it, the whole Indian mindset is even more "fantasyland/bullish" than on the NYC exchanges.
Shemetah and Jubilee year...
Equating the fall of Greece (or the boot out) to Ferdinand's assassination?
If a shity little majorly indebted country like Greece is the keystone for the EU financial structure, FUCK them all.
What will piss me off is the US bailing them out via the IMF.
bout time for a title loan... Putinmax.
I see it as 350 billion going bye bye overnight..that has to hurt someone or something.....and if their are bets on that...those too....this is a test of the future western economies....is all this debt going to be paid off..or just go bye bye...