Weekly Market Drivers: It's All About the Bondholders (Not Greece), Stupid
Cliff Wachtel submits: The big lesson of last week (and last year’s Greek crisis): The EU situation is a financial crisis driven by political decisions. To anticipate the coming weeks’ market movements, focus on what is likely to serve the policymakers’ priorities. It’s all about the banks, not the PIIGS. Always has been. Read on for details.
PRIOR WEEK MARKET DRIVERS
According to most financial media, events surrounding the risk of Greek default were the prime market drivers.
It’s All About Fear Of Greek Default, Right?
Greek Default Threat To Global Banking, Economies, Financial Markets
The only thing that really mattered last week was the threat of an imminent banking crisis posed by an imminent Greek default. All else last week was essentially irrelevant in influencing market movements. Overall markets continue to believe the EU would, as it always has, grudgingly provide the cash needed to avoid a Greek default thatComplete Story »