Full market report tonight but first Greece!
We love Greece. We have visited a few times. Some of the most beautiful places on the globe can be found there. Santorini, Mykonos, Corfu are bucket list places to visit but there is a lot of crap going on there and it is all about the bucks.
We remember the old line that if someone owes a little money to a bank, it is their problem but if someone owed a ton of money to a bank, it is the bank’s problem and that’s where things stand. The bank is the Eurozone and the number is over $300 billion. This is a gargantuan number considering the size of Greece. If Greece decides to shoot a certain finger back at the Eurozone, you would see massive write-downs as well as quick raises of capital. It would also open the potential for other debt-laden countries like Italy and Spain to do the same. Thus we think it is long odds for a default right now as no one wins. The problem is that all we will get is an extension of an extension and nothing more than more kicking the can down the road…which is ULTIMATELY not good. We capitalize the word ULTIMATELY because massive long run debts always end badly. Keep that in mind. And just remember, the great old U.S. of A is sitting on an $18 trillion debt time bomb that is being glossed over because of a rigged bond market, the printing of money and a media that hears no evil, sees no evil and speaks no evil as long as the great corrupt socialist is in power.
The bigger laugh is to hear the new head of Greece complaining there has been too much austerity. Yup…and the Knicks are going to win the NBA championship.