By Michael Lewitt at Money Morning
As a veteran investor and hedge fund manager, I’ve often pursued strategies that feed off volatility. So for me, the type of schizophrenic, up-and-down action that we saw last week was just what the doctor ordered. Unfortunately, for anyone banking on a positive long-term outcome for Greece and the EU, the doctor making orders may well be named Kervorkian.
The “Gridiots” in Europe spent the week torturing a world too fearful (or stupid) to just ignore their idiocy. The dysfunctional and bankrupt Hellenic State will continue to be funded for a couple of more years – after which they’ll have to go through this moronic exercise all over again. Having allowed its populace to self-immolate and vote against accepting the demands of its creditors, the Syriza government caved to precisely those demands and now the world will wait to see if the rest of the European governments will be dumb enough to fall for this charade.
Nowhere in the proposed deal between Greece and its creditors is there any write-down in Greece’s hundreds of millions of euros of debts or any recognition that the Greek people will continue to suffer inside the currency union. While this was going on, the Greek banking system and the Greek economy were coming apart at the seams. Greeks are known for their epics, but the only thing epic about this sorry episode was its pointlessness.
Greece’s problems are unlikely to trigger a broader global sell-off although they may prompt the ECB to intensify its already doomed QE program. According to investment research firm Cornerstone Macro, and The Wall Street Journal, foreigners’ holdings of Greek government debt have plunged from €247 billion ($275 billion) to just €34 billion -a decline of 86%. And losses that should be realized on Greece’s debt are likely
Originally appeared at: http://davidstockmanscontracorner.com/greece-china-puerto-rico-idiocy-knows-no-borders/
Greece, China, Puerto Rico — Idiocy Knows No Borders is a story from: BitcoinWarrior.net