Notes From Underground: It’s all Greek 24/7 (sorry about that)

Being that we were all over the Grrek debt issue for the last two months, we find the present infatuation to be laughable. But the power of news to drive trading volatility is something we have to respect. For the last three days, the markets have been to and froed by the headlines generated by the most recent speaker. The power to inflict pain by headline-driven gyrations certainly keeps traders on their toes. We always caution our audience to decide whether you are a trader or an investor because that distinction will certainly determine your time horizon. It is so interesting to listen to the talking heads comment on the photos of civil servant strikes in Greece as if this is something newsworthy. Our only response to these purveyors of popular myths who can’t report process is the Gil Scott-Heron song, “The Revolution will not be Televised.”

From the European Union comes one report after another about the possibilty of a bailout of the peripheral EU members. We caution to take whatever the lastest European bureaucrat says with a grain of salt. We are steadfast in our belief that the European situation will be resolved politically and going forward has little or nothing to do with economics. The financial  world has already analyzed the balance sheet ramifications, but the politics have yet to be determined. The only thing that we can add about all the statements that cross the newswires emanates from Henry Wotton[1568-1639]: “Ambassadors are honest men sent abroad to lie for their countries.”

A quick response to Bernanke’s speech: Nothing new in it but probably gives some solace to the hawks, but this has been a rehash of earlier speeches.We still caution that the FED moves are based on models and have yet to be determined in practice about the real impact. Trying to make sense out of an unbalanced world … oh well, back to snow removal.

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