The Never Ending Bailout

by Larry Levin

The market this Sunday evening is once again catching a bid from the never ending Greek saga: The Never Ending Bailout. Although EVERY prior announced bailout was utter BS, we once again have a so-called "bailout" for Greeks. It will surely stick one of these days, but I refuse to believe it again until I see it.

The current story line of this Greek tragedy is a combination EuroZone and IMF bailout. From the EuroZone the island nation will receive 30 billion Euros and from the IMF an additional 10 billion Euros. But remember, this is a never ending bailout-play: a Greek tragedy. Greek officials have already said "thanks for the money - but we'll need more soon." Said another way, "we'll need ANOTHER bailout in a year or so."


From this Reuters story:

http://www.reuters.com/article/idUSATH00535520100411

we glean the following.


It would be logical that the EU/IMF aid for Greece amounts to some 80 billion euros ($107 billion) over the next three years if the mechanism is triggered, a senior finance ministry official said on Sunday.

The senior offical said aid this year would amount to at least 30 billion euros from the euro zone and at least 10 billion from the IMF.

"40 billions for 2010 is part of a bigger amount for the three-year period. A logical amount for the three-year period would be double than 40 billion," the official told reporters.

The official added: "We will monitor the markets in the coming days and, depending on how the spreads move, we will decide whether to request the aid mechanism."

He reiterated that Greece still aimed at being able to raise money from markets.


From all of this one should soon expect handouts to Spain, Portugal, Ireland, Italy, Bulgaria, Hungary, Latvia, Lithuania, California, Illinois, New York, Florida, Nevada, Arizona, Michigan, Ohio, and New Jersey...to just name a few.

Behold the age of infinite moral hazard!




Previous Day's Trading Room Results:

Trade Date: 4/9/10

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

1) B/away buy @ 8:35am at 1186.00 = -1.25 (1 lot)

2) Trend Reversal sell @ 9:19am at 1187.00 = +.50 & +2.75 (2 lots)

3) Floor Trader buy @ 11:48am at 1187.25 = b/e & b/e (2 lots)

4) Algorithm positions (7)

5) "Reading the Tape" positions (6) ...combined Secret's, Algo, & "Reading the Tape" total...-0.50



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