Wednesday, June 10, 2015

The Daily Drama Offers No Solutions

Greece's debt window is slowly closing. Smart money has no interest buying long-term Greek debt backed by an economy shacked by austerity and socialism. Greece remains locked in a vicious cycle in which austerity reduces economic activity. Reduced economic activity, in turn, reduces taxes necessary to pay the bond holders. Reduces taxes, in turn, requires additional aid from Germany; wonder why the Germans are worried?

While the Euro and U.S. dollar react violently to this to the daily drama, their long-term bearish (mark down) and bullish (mark up) trends remain in tact.  These trends will reassert themselves when the invisible hand is ready.

Headline: Wall St up on report Germany may consider Greece aid

(Reuters) - U.S. stocks were higher in afternoon trading on Wednesday after a Bloomberg report that Germany may be satisfied with Greece committing to at least one economic reform in return for aid.

All three major indexes rose more than 1 percent on the same day for the first time in a month.



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