Looking Ahead as Greece Prepares for the “Mother of All Strikes” Read more: Looking Ahead as Greece Prepares for the “Mother of All Strikes”
By Joel Bowman
After a spectacular showing last week, stock markets have once more succumbed to spasmodic bouts of deluded optimism punctuated by frightful moments of self-loathing.
It’s good to see them back to their old, bi-polar self again.
Almost half of last week’s 541-point gain was wiped out in yesterday’s session alone when investors recalled, suddenly, that Europe is still broke; a cold, hard reality that had apparently slipped their minds.
“Stocks worldwide were up big time yesterday,” we wrote after one particularly showy single-day rally last week, “mostly buoyed by news that the politicos in Europe had ‘renewed their commitment to talk about trying to eventually come to an agreement’ about how to fix a problem they themselves caused and did not see coming. Or something like that. Bravo.”
Don’t buy it, we cautioned, remembering Eric Fry’s words of wisdom:
“Bankrupt entities tend to go bankrupt,” said he. “Greece will default…eventually.”