Seeking Alpha

Philip Davis'  Instablog

Philip Davis
Send Message
Philstockworld.com is the fastest growing stock and option newsletter on the Web. "High Finance for Real People - Fun and Profits" is our motto and our Basic and Premium Chat Sessions offer readers a chance to speak to Phil live during the trading day as well as authors like Optrader,... More
My company:
Phil's Stock World
My blog:
Phil's Stock World
  • Fixed Markets Friday – Greece All Better – Next!  0 comments
    Mar 9, 2012 9:36 AM | about stocks: AAPL, CMG, FSLR, GMCR, QQQ, SBUX, SQQQ, TLT

    The Greek debt crisis is over!

    Again. Well, for now. Despite the "voluntary" participation of 85% of the debt-holders, collective action clauses (NASDAQ:CAC)will be triggered to force other bondholders and a similar action in Argentina led to 10 years of lawsuits - so we have that to look forward to. "The rule of law has been treated with contempt," said Marc Ostwald from Monument Securities. "This will lead to litigation for the next ten years. It has become a massive impediment for long-term investors, and people will now be very wary about Spain and Portugal."

    "Even if we band aid this Greek situation right now, they're going to default down the road or write down 100 percent of the debt," said Scott Wren, senior equity strategist at Wells Fargo Advisors.

    Now the European Commission has sent a team of experts to Spain to check its budget deficit data, according to Spanish website Expansion, and they will be greeted by a National Strike,scheduled for March 29th, to protest the austerity measures the EU is trying to enforce. Greek bonds are already passing the 20% mark again so this "fix" has lasted all of a few hours and already we're seeing rates creep up in Italy, Spain and Portugal (Ireland can't even borrow money - at any price) and part of the reason is they just blatantly screwed over the last batch of bondholders and Credit Default Swaps have now been revealed as completely useless tools to protect bond investments - and part of the reason is Uncle Sam needs to borrow a record $227Bn to pay the bills for February alone:

    While the above chart may look like a catastrophe to a casual observer, especially considering February is the shortest month of the year - others may be cheered by the thought that the US will never actually have to pay this money back, as Greece has now shown us all that the path to default is celebrated by global markets climbing to record highs. So, if Greece's $450Bn default can get us to Dow 13,000 - imagine what the US's $16Tn default will do - I can't wait!

    We are waiting for the jobs report this morning but according to the Gallup poll, there aren't any. Gallup sees 9.1% unemployment in February, up
    continue reading

    Edit | Join Member's Chat - 13 Comments Here »

    Tags: AAPL, CMG, FSLR, GMCR, Greece, QQQ, SBUX, SQQQ, TLT, unemployment

    Email This Post Email This Post Facebook Twitter LinkedIn del.icio.us Digg
    Themes: Greece, Unemployment Stocks: AAPL, CMG, FSLR, GMCR, QQQ, SBUX, SQQQ, TLT
Back To Philip Davis' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.