This is just insane to me. They keep announcing bigger and bigger debt packages to fix the situation in Greece, and finally they go bonkers and announce something that's 500 million euros, and the market snaps back 200+ pts on the YM. Everything is showing signs of being better: euro is up, the markets are up, gold isetc. How can that be? This can't possibly make everything better now, something has got to give. If they are spending this much money, you would expect either gold to go up, or the euro to keep going down. If this was the reaction, why didn't they just announce a 2 trillion euro plan and watch the markets shoot to the moon? Thankfully I covered my shorts on Friday in anticipation of a big snapback once Europe came into session, but this is ridiculous. Is it really that easy to fix this problem, just announce bigger and bigger aid packages??
Ever since the bailout of our economy has this whole crisis been a joke, they keep bailing out one country after another, there is no such thing as failure anymore. They continue to spend trillions and trillions to prop up every single worthless economy around the world as they will not let anyone fail. Everyone actually believes spending this money is the fix to the global credit crisis but little do they know that this will cause major problems in the future, all of these bailouts are just quick fixes only to prolong failure in the future. And your right if they made it a 600 Billion aid package why not just make 10-20 trillion, why not just print bigger aid packages so that no one has to worry about anything for the next 1000 years. How anyone can think this is a positive is just a fool.
What I don't get is that something has to give. If they formulate this 600 billion euro package, where is the downside? Shouldn't something like gold spike up? What about their interest rates? Will their credit rating go down? It just seems like it was a net-positive result! It seems like it's a perpetual energy machine where you just get more and more positive results by issuing bigger and bigger aid packages, and nothing bad happens. If that's the case, really they should have made it 2 trillion and be done with it forever.
you won't something has to give right away? tonight? the fiat system is what will fail. give it some time. gold just made its records on Friday. you see they said all is fixed last year and bum! another crisis in just a year the next one will be in 6 months, then another one in 3 and then will get hyperinflation in a year or less
I won't say I felt "great" about it but with naked options I was short the 30futs and long small GS and BP (some C also but that wasn't part of the weekend plan) covered half the bond options in the last hour or so and feeling very good about GS next week. BP well, that one is up in the air because I would guess others like me expected some good news to come out over the weekend and it is not good but maybe the market will at least provide somewhat of a floor. Glad to see you covered your short with the euro. I think the odds greatly favored some type of "good news" over the weekend to keep the sell button from being pushed on Monday morning. But your right the reaction is big and while Greece maybe getting more money it doesn't mean they are not still spending more than they bring in. Doesn't matter though. market trades short term based on emotion, fear and greed rule the day and fundamentals rule the long term (6mos time frame as a bar minimum). there is another country that is spending more than they bring in as well. It's why I am and continue to be short the 30yr bonds futs by selling call options. : o ) The dope to numb the pain will run out (it always does) and then what will Greece and the euro do?? In the mean time the shorts looking for the black Monday are covering and the sky looks bright and sunny ... at least for a while
If they didn't pull this wool over your eyes, the carry traders would be eating Kraft dinner tonight.
As you can see they believe they can fight a crisis with even more money and bigger aid packages worth trillions. It seems the easiest way to fight off recessions, depressions and the collapse of global markets is with more free money.