GREECE and the Euro

Because Greece is about to exercise it's option to Grexit. But then maybe not. Ask the financial media and ET members. They know best.

 

greek bill passed...greece will receive bailout and death sentence

 

http://finance.yahoo.com/news/greek-lawmakers-pass-austerity-bill-234833827.html

http://www.bbc.com/news/world-europe-33535205

I am surprised they were able to get the votes.

This calls for a trade...but I'm not sure just what trade.

 

I agree. It is the death sentence. Now we will see if the execution is botched and the prisoner survives, or the prisoner dies as planned..

 

Death sentence? I think they will use up the cash and go bankrupt later. All their loan repayments have been financed by EU (still are), so nothing has changed basically. Greeks made promises they won't deliver IMO.

 

another few months of "crisis" meetings to look forward to while they "work out" a deal then

 

Greece votes "Yes"...
Greece is a good example of how socialism bankrupts a nations and its people creating misery - used by politicians to gain power buying votes with borrowed money.

 

The problem is they have not suffered enough pain for them to exit the eurozone. There were one or two petrol bomb fuelled riots yesterday, but most protests were peaceful. Only when the greeks really start to revolt, will they default fully and exit the euro.

In essence they are acting like a bad trader who can't cut his loss, who just watches the market going against him, until, finally he can't take the pain no more and yells at his broker to get him out of everything.

 

http://stockcharts.com/h-sc/ui?s=grek

Trade:
with Grek at 10.89
Dec 13/16 bear call spread for a net credit of $35
Yield = 35/265 = 13.2% in 155 days or 31% annualized
Price ............Profit / Loss ........ROM %
8.00 ....................35.00............ 13.20%
11.00 ..................35.00............ 13.20%
12.00 ..................35.00............ 13.20%
13.00 ..................35.00............ 13.20%
13.35 ....................0.00.............. 0.00%
15.22 ...............(186.80).......... -62.27%
16.00 ...............(265.00).......... -86.80%
17.00 ...............(265.00).......... -86.80%
20.00 ...............(265.00).......... -86.80%

 

http://www.ekathimerini.com/199553/...rmany-suggests-greece-issue-ious-domestically

And what would we call those IOU's?? Drachma?