[FoRK] World stocks dive on Greece turmoil

Ken Ganshirt @ Yahoo ken_ganshirt at yahoo.ca
Wed May 16 17:20:50 PDT 2012

Thanks Owen.  But the same thing applies to all of the countries on the brink.  The austerity measures will kill their economies as surely as continuing on their present paths.  The only question in all cases is which option will kill them quicker.

It could be - and has been - argued that trying to remain in the EU and accepting the bailouts with their onerous austerity measures is a more certain death sentence than going their own way.

And that begs the question of whether the EU might not be much better off with a cull.  Or might even be better off not existing.

I (fortunately) am not enough of an economist to judge the latter.

Would it be fair to guess that arbitrage and emotion are at the core of the current stock market silliness, rather than anything to do with economic realities?


--- On Wed, 5/16/12, Owen Byrne <owen at permafrost.net> wrote:

> From: Owen Byrne <owen at permafrost.net>
> Subject: Re: [FoRK] World stocks dive on Greece turmoil
> To: "Friends of Rohit Khare" <fork at xent.com>
> Received: Wednesday, May 16, 2012, 6:38 PM
> If they refuse the bailout and end up
> out of the EU, the concern the markets have is that they
> won't be the only
> country to end up out. The word "contagion" is being used.
> The EU can probably survive without Greece, but not without
> Greece, Ireland, Spain, Portugal and Italy. 
> Owen
> On Wed, May 16, 2012 at 04:23:29PM -0700, Ken Ganshirt @
> Yahoo wrote:
> > I don't comprehend this [stock market silliness]. 
> It doesn't matter what Greece does; they're screwed anyway.
> > 
> > If they refuse the bailout and continue deficit
> spending they're screwed and will default.
> > 
> > If they accept the bailouts and try to implement the
> brutal austerity measures that are the condition for the
> bailouts they're screwed and will default.
> > 
> > The only question is which course will force them into
> default quicker.
> > 
> > Can someone tell me why the stock markets are in such a
> tizzy about this at this point?  It should have been
> obvious months ago what the outcome will be and should
> already be priced into anything that might be affected by a
> Greek default.
> > 
>>    .....   Shouldn't it??
> > 
> >          ...ken...
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