Greece will wait to see how markets react to tougher austerity measures demanded by the European Union before deciding on when to issue new state bonds, a government official said Tuesday.
This is classic example of probing for positive market reaction through presentation of window-dressing solutions in hopes that it solves or contains the problem. Unfortunately, solutions that lack teeth provide only fodder for media coverage. This problem, like all before, will be pressed until the money is wrung out. That is, until Greece is removed from the Union or the printing press is used to stem the attack. These options, clearly, have been avoided because of their obvious consequences.
If nothing else, this should serve a fresh reminder to the US, a country facing similar problems from within, that the markets are always in control. No amount of lip service or money provided by pools of protective groups can protect a weak position.
Source: finance.yahoo.com
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