The Headlines Say It All (Or, Alternatively, "All You F%$^ing People Are Insane")
When I saw an alert come through this morning that said "Stocks rise in early trade on optimism over Greece," I thought to myself (pre-coffee so who knows if I was of my right mind when I thought this) "are markets really that stupid?"
I already know the answer to that and even my pre-coffee head knew the answer. Here we've both been waiting anxiously for the jig to be up, for the music to stop, for the fat lady to bust out a chorus, for the other shoe to drop 90 feet to its death... you get the point. Despite all reasonable expectations otherwise, the debt machine can has somehow been successfully kicked down the street for over two years and still hasn't fallen to pieces. Sure, it's battered and bruised but this baby is still roaring.
The headlines have it:
Stocks traded higher on Wall Street Tuesday as the euro rose against the dollar and commodity prices jumped on optimism that new aid for Greece from the European Union was on the horizon.
Europe stepped up efforts to draft a second bailout package for Greece, with private sector participation still an option to help relieve the country of its huge debt burden.
“The news out of Europe is propelling the market higher in pretrading, following the rest of the global markets. News regarding a Greece bailout is basically fueling the optimism,” said Peter Cardillo, chief market economist at Avalon Partners in New York.
“It is causing the dollar to go back down, strengthening the euro, so that is inviting risk back into the marketplace.”
If I wasn't before, I am now thoroughly convinced you people are out of your minds.