The Greek Default Was a Scam All Along
Friday, May 18, 2012
Global banks see market rally on Greek exit … Major global banks are advising clients to prepare for a stock market rally and a resurgence of the euro if Greece is forced out of monetary union, betting that world authorities will flood the international system with liquidity. Bank of America said EU authorities will pull out the stops to keep Greece in the system as they weigh the full dangers of contagion. Should that fail, it expects a series of dramatic moves … Mr Bloom said the ECB is playing a game of chicken by waiting until it has secured maximum compliance from EMU’s wayward states before coming to the rescue. “Once again it is holding everybody over the edge of the abyss until they scream for mercy,” he said. – Ambrose Evans-Pritchard/UK Telegraph
Dominant Social Theme: Oh, no. Greece is leaving!
Free-Market Analysis: Ambrose Evans-Pritchard, with some of the best sources in the world, has buried his lead once again.
Just look at the excerpt from his latest article, above. The headline is that there will be a global rally. We figure this is a pretty good speculation.
He was told there would be, no doubt by fairly prominent people who want the word to get out.
But then he can’t help report the rest, that the ECB is “playing a game of chicken by by waiting until it has secured maximum compliance from EMU’s wayward states before coming to the rescue.”
Say … what? You mean all this breast-beating over Greece’s expulsion from the EU was a kind of theatre?
That’s a pretty big story, Ambrose! Why are you burying it … ?
Of course, he CAN’T report it any other way. He can’t write that the whole thing, from beginning to end, is a kind of directed history.
But he’s a good reporter. And he can’t help but write the story.
But … jeez. Here’s a bet. Our modest publication will be THE ONLY ONE pointing this out today. Evans-Pritchard writes a column read in aggregate by millions, but we’re fairly certain that, in the short term anyway, we’ll stand alone in pointing out what has been clearly reported now:
It’s an entirely manufactured crisis.