Wednesday, October 05, 2011

Greece is not Lehman!

Greece is not the new Lehman! Please... no one tried to save Lehman failing!! Everyone is pretending to save Greece, but only buying time to prop-up the real chance of zone failure - Spain and Italy. The EU leaders know well enough that once Greece defaults, all attention will fall over to Spain and Italy which are too big to be defended the same way. Everyone just kicking the can down the street and making it that much more difficult for Greece to recover....All efforts will eventually fail and move over to recapitalizing French and German banks. For now, however, Greece is the pawn between the real chances of Euro failure and the carrot to an IMF style recovery (Has that ever worked with a structural loan cycle situation before, however?) Oh YES: Forgot to add: Continue to remain bearish for the medium term, irrrespective of short bouncebacks. Structural problems remain.

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