The stock market on June 28th, 2011 is currently up 118 points due to the news that Greece will pass austerity measures and the European Union is safe. Multiple articles outline this “good news” and here is one excerpt from the Wall Street Journal:
Increasingly confident about a viable Greek bailout, investors dared to venture out of safe-haven Treasurys Tuesday ahead of this afternoon’s five-year note auction.
Reports emerged that German banks could follow a proposal made by French banks earlier this week, which offers to roll over a portion of their Greek debt holdings as long as rating agencies don’t classify their move as a default.
Private-sector involvement in extending the maturity of Greek bonds has been a big question mark in the Greek rescue package debate, so signs that banks are willing to participate sparked investor optimism about about preventing a potentially contagious credit default. Hopes are also high that the Greek parliament will pass an austerity plan–a crucial vote scheduled for Wednesday.
So what do investors on Wall Street know that the rest of the world does not? There are multiple articles and videos outlining riots and strikes in Greece. This video below is from today and shows people wearing Guy Fawkes’ masks and gas masks to fend off tear gas. People wearing all black are anarchists.
While the world watches Greece burn, the market and EU is celebrating the aversion of a Greek default. If the celebration is premature, Greece will be joined by Italy, Spain and Portugal in what is becoming known as “contagion”.
The larger concern for Americans is simple. When people have been placated by government for votes, sustenance and/or workfare, the results are what the world is witnessing in Greece when reality can no longer be ignored. Our government’s financial situation is the same as Greece.
US Faces Same Economic Woes As Greece: Marc Faber
The US is facing the same dire economic problems as Greece, Marc Faber, author of the Gloom, Doom and Boom Report, told CNBC Friday. “Many people haven’t woken up to the severity of the US fiscal crisis,” Faber said by phone. “The only difference for the US from Greece is that it can print more money.”
Faber said that most western countries as well as the US cannot pay for unfunded liabilities and that more sovereign defaults will happen in the future.
What do you think will happen in our country when the “stimulus” spigot is turned off? We are seeing the beginnings of civil unrest across the country as “flash mobs” rob stores and gangs roam the streets in our cities. Redistribution is not working and retribution may become the rationale for these useful idiots to carry out the plans to destroy our country. Propaganda has a strong influence on the weak minded:
httpv://www.youtube.com/watch?v=k1rlThKe1qo
So why is the stock market going up?
David DeGerolamo
