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Eurozone finance ministers have cancelled a crisis meeting planned for Sunday because they need more time
You see, the stock market really is not about Greece, it is about banks. Yes banks, the banks are the institutions that are holding Greek, and European paper, or what we call Greek bonds(debt). If Greece defaulted the banks would lose a lot of money, as there so called bond investment went sour. It is always about the banks. In 2008, when the stock market crashed and every leading financial institution was insolvent, it was about the banks. Nothing has changed since that time, bailouts continue to occur on a daily basis. This action by the central banks and the International Monetary Fund will continue until the people lose faith in paper money. Until that time, it would be prudent to simply expect more bailouts for other nations and states down the road.
As traders, we continue to simply trade what we see on the charts. Traders really do not buy into the story that is being sold to the public via the mainstream media. How many times have we seen a public official rescind a comment, or statement that they have made six months or a year earlier? The answer is that we see it and hear it all the time. For example, when President Obama ran for office he said that he was against debt, now he says we need debt. The debt is over $14.3 trillion at the moment, how much do we really need? Lets take the Federal Reserve Chairman Ben Bernanke, in 2007, he said sub-prime loans were not a problem, then in 2008, sub-prime loans were the problem. Currently, Chairman Bernanke says that there is no inflation, yet the world is crying about inflation. Can anyone believe this stuff anymore? The only truth is the charts. The charts were oversold and the stock markets bounced ahead of a major U.S. holiday. As fast as these markets go up they can just as easily come down. If you want the really scoop on the markets just stick with the charts.
