Tuesday, February 9, 2010

Greece is the Word

It took a few minutes not to pun put with Greecing the skids and other such nonsense. Apparently, the short coverers last Friday got it right as word spread across the street that Germany was coming to Greece's rescue.

Of course, there is no confirmation that this is happening but since when does the market need confirmation? Predictably, the euro soared and that means the US dollar sank.

Meanwhile, back in the jungle, er, outback, check out this controversy. No hard proof or official word is offered so get out the grain of salt.

Australia close to defaulting on debts: Senator Joyce

Any individual country, save for China and the G7, would not take down the global economy. But When it moves from small countries like Greece to infect a small batch of others then we've got problems.


William said...

Maybe Germany can bail out California while they are at it. After all, it's a bigger economy that Greece anyway.

patrick neid said...

I think it would be foolish to think that a country in Europe or a state in the US would not be bailed out. Those days ended a year ago when ink was ordered to print trillions of dollars and Euros. There is no turning back. We have gone full tilt Keynes.