Monday, March 29, 2010

Grecian Formula - It's Just Esthetics

A very interesting post by Rebecca Wilder on newsneconomics.com last Friday set me to reading all the background articles she recommended over the weekend.  Despite my lack of understanding of every single detail, the gist of it all is that Greece may eventually need in the neighborhood of 75 billion Euros to avoid default on its sovereign debt - not the 25 billion semi-offered maybe perhaps last week (according to The Economist).  It seems to me that the mainstream press is being hornswoggled by EU press releases designed to do just that.  Obfuscate, that's the EU answer!  As an aside, Groggy Greenspan (who bears at least some responsibility for getting us into this mess) seems to be paying more attention these days, and agrees with Philip Manduca that the canary in the coal mine is the U.S. ten year treasury rate rising above 4%.  If it does, watchout below as folks desert the stock markets - where they have been forced to invest by low rates offered elsewhere.  I have more faith in Manduca needless to say, and again recommend you watch his YouTube interview on CNBC.