Battle of wills
February 16, 2012
I don’t normally send you an article from the Financial Times, but this morning it serves the purpose of reminding us that Europe really wants Greece to leave in an “orderly” fashion, soonest. Like, now. “And if you stay we will make life miserable, you lying, cheating, ... etc. @#$%#@%, or words to that effect. “No more Mr. Nice Guy.” You can bet German banks can now deal with the Greek debt issues. I wrote two years ago that this would happen when the German banks were ready and not one day sooner. That time is now. This one I nailed. I just thought I would point that out, in case you only remembered the ones I get miserably wrong. :-) I do not pity the Greeks; they dug their own holes. But the average guy on the street had no clue they were in the deep-hole-digging business. They thought life on European debt was part of the deal. Not different from when the US also realizes that leverage and debt can be a problem. And expect a euro rally when Greece leaves, or a few days after, when the realization dawns that the euro is better off without them. Until the ECB starts printing to cover Italy and Spain.
Download - Greek_rhetoric_turns_into_battle_of_wills_-_FTcom.pdf