Greece Again....Really?

by Larry Levin

Greece is in the news again...really? When will this story just go away? Apparently Greece was NOT bailed out a few days ago as reported in The Guardian from the UK and is still in need of funding its profligate spending habits & future promises. But what is even more amazing than that, the banksters on Fraud Street used this morning new "rumor" of a "new bailout" to pump the market higher again on even lower volume again. This is now beyond ridiculous.

According to ABC news:

Greece could seek IMF funding to help overcome its debt crisis if its EU partners do not provide "clear support" next week, a government spokesman said Wednesday.

George Petalotis said the March 25-26 European Union summit on how to deal with a potential bailout for Greece will be crucial, as the country struggles to reduce a bloated budget deficit and public debt.

"I believe the summit is when it will become evident whether the European partners want to support a country ... or whether we have to resort to some other solution," Petalotis said.

Nope, that does not sound like a "done deal" to me.

In a piece on Bloomberg today we read:

March 17 (Bloomberg) -- Harvard University Professor Martin Feldstein, who warned almost two decades ago that the euro would prove an "economic liability," said Greece's austerity plan will fail and the country may quit the single currency to fix its fiscal crisis.

"The idea that Greece can go from a 12 percent deficit now to a 3 percent deficit two years from now seems fantasy," Feldstein, an adviser to U.S. presidents since Ronald Reagan, said in a March 13 interview in Geneva. "The alternatives are to default in some way or to leave, or both."

Bailout? Professor Feldstein says Greece's only options are DEFAULT, leaving the EU, or BOTH.

But what would any of this matter to the pump-monkeys on Fraud Street? Today's so-called Greek rescue package is the 6th? 7th? 17th or 27th? I have lost count. But no matter, another unfounded rumor is just fine with the computerized trading from Goldman Sachs and JPM. There are no shorts left to stop it but there are no buyers other than the computers either: each day is governed by ridiculously low volume and no volatility whatever, which is a sign of no/few new buyers.

The trend is up so you do not want to short this market; however, it is so abnormal that I believe it could (not will) suffer a radical drop if the tensions with China increase over currency manipulation, a-la the 1987 market meltdown and the German Mark.




Previous Day's Trading Room Results:

Trade Date: 3/17/10

E-Mini S&P Trades*
(before fees and commissions):


1) No "secrets" trades today.

2) Algorithm positions (5)

3) "Reading the Tape" positions (4) ...combined Secret's, Algo, & "Reading the Tape" total...+4.25



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