http://www.cnbc.com/id/102752199

Thoughts?

Where are those motorcycle body kits going to come from now?

Are we following china's lead?

1.5% isn't that much.  It could easily recover that by the end on Monday.

I enjoyed the 2% discount I got a couple of weeks ago. I'll take another.

Greece will come out better than the EU who financed them when they default lol

the S&P500 is up 11.81% over the last 12 months.  

it's called "regression to the mean".

this isn't complicated, folks.

ar-jedi

Well everyone's market is taking a hit from this. Because Europe is a major buyer and seller of things, and if Europe experiences economic instability than the reliability of it being there to buy and sell you things at the same or better price next year goes down.

What I've heard from people wiser than I in these matters is that Greece has poor export infrastructure. That is, they make electrical and machinery products that could be competitive but they're not so good at getting it to the rest of the european market, they don't have the business groups that other countries do for this purpose, so they make less sales so they have less jobs.

Is anybody screaming Jade Helm Conspiracy yet

China's equities looking pretty shaky.  Euro on the ropes with a lot of uncertainty.

Meanwhile, the US doesn't have any bad news that is new (wage stagnation, workforce participation, low rates).  While I expect a short term drop, we are the best equities market right now.  Where else can you park your money right now and expect any return?

Does this mean the end of the feta cheese salad days?

I'm sure it is.  I'm not in to market trends, but I can gather something from that.  

I'm not that familiar with how Greece is going to be viewed on the market.  It looks like EU, and their markets, are going to take a hit. I'm not sure if there's a "trigger" point there, a worry of this having a domino effect. You can hear "doom and gloom" to "already factored in to the market" depending on where you look....

These things run in cycles,  I'm sure it will all pan out and be all good again in due time
 

I predict the Dow Jones Industrial down 247.43 points tomorrow at close

Assuming they fix the issues with tax evasion and overspending the next time around....

Peak Gyros.

125 down.

excuse for a correction,  i dont care about greece, i buy stocks every week

Gym007 thread.

"Doom and gloom" is big business.

Double

If the greeks don't pay their debt - if they try a currency change - I predict they will be invaded.

the problem is not Greece per se.  

first, a reminder that the eurozone is made up of european countries that have adopted the euro.  not all european countries belong to the eurozone.  england, for example, is still on the british pound.  

the problem is that the EU and more specifically the eurozone has some inherently stronger economic players (e.g. Germany) and some inherently weaker economic players (e.g. Greece) .  there are a myriad of reasons for this differential and i'm not about to retype the detailed analyses made elsewhere.  but nonetheless, there exists a fundamental problem with the eurozone arrangement: while one of the initial goals was to make a regional currency to rival the USD in power and stability, the formation of the eurozone creates many secondary issues.  one such issue is that individual eurozone countries no longer have the means to control their internal money supply.

example: the USA slips into recession.  the government, via the Federal Reserve, lowers interest rates and injects money into the economy to promote borrowing and growth.  eventually, the economy starts firing on all cylinders.  perhaps it gets too hot, raising the specter of inflation. the Fed in turn increases interest rates and slows economic growth.  as you can see, having the levers on your money supply and interest rates can be very valuable when it comes to regulating the pace of your economy in search of the "goldilocks" state -- not too cold and not too hot.

as a member of the eurozone, Greece has no such levers.  Greece belongs to a communal system wherein the ECB (european central bank) administers money policy for the members of the eurozone.  the ECB is "stuck" trying to make "average" assessments for the benefit of ALL of the eurozone members.  so, Germany's economy is hot but Greece's economy is stagnant?  the ECB holds rates steady, which introduces the worry of inflation for Germany but more troublesome the problem of no growth for Greece.

Greece is not the only problem child with no levers and a poor economy.  

Spain, Portugal, Italy are others in the same situation.  they can not adjust their internal money rates to help bootstrap themselves.  so the German economy roars on, and Greece goes nowhere.  the danger now is "contagion" -- if Greece exits the eurozone, so could Spain, Portugal, and Italy in domino-like fashion over the next few years.  

the political question is what good is a financial collective if the member-nations keep dropping out?
the financial question is how does the "failure" of the euro destabilize european finances..

buy USD.
buy GLD.
sell China.
sell OIL.

ar-jedi

Ok Mister I've had just about enough of your common sense in here... now let me get back to panicking in peace

I remember when some of my former Euro Trash friends were praising the Euro and how it would be the new world currency, and ultimately destroy the dollar.

don't throw stones when you live in a glass house.  

how many states in the USA are essentially bankrupt due to pension obligations?

well, there you go.

ar-jedi

Did the Russians pull out all of their money?  They had quite a bit there, before the first crash.

I'm just in for the ride. It could get ugly or just be a bump in the road. If they leave the EU I don't think it would hurt them as much as it would Greece. I don't see German citizens willing to support Merkel giving Greeks money they won't pay back for very much longer. I personally would like to see what Greece would do if they left the EU. How do they keep up the gravy train? Do they bring back their own currency and go Zimbabwe. Personally I think the EU would be ok, but what goes on in Greece will be interesting/ what happens when socialism outpaces it's self.

Yet the dollar is still at the top of the heap, and by a long shot.

While we have major problems the dollar is still head and shoulders above any feasible alternative.

Good to be an American.

you see the symmetry between bankrupt states in the USA and the current situation in the eurozone, right?

ar-jedi

I'm going to put some cash I'm a sock, then put it in a plastic bag and bury it in the yard.

from watching the market for a few years... futures dont really mean much of anything.

Yes.

My point is simply that being the reserve currency is very much better than all other options.

The US of A would be much better off living within it's means but if you have to spend beyond your means then being able to print cash that is the standard of the world beats not being able to print cash that is the standard of the world.

We tax the world by being the reserve currency. It really is not fair but being born an American has real benefits.

I am damn glad I was born in this country, even with it's faults.

If you want to buy energy then you had better scrounge up some dollars. Energy sort of makes the world go around.

All but six.

I live in Wyoming.

good assessment

They are trying hard in the media if they are leading the scare cycle with 1.5% predictions.  It'll be higher but this isn't the economic reckoning that some have been hoping for.

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Not as big as the "valuations don't matter, this market's headed to the moon!!!" business.

Indeed.

By whom? With what Army? What are they going to take? Greece's unpaid bills?

Spain, Italy, Portugal could be next.

The problem with this is that the Greeks, and everyone else for that matter, inherently has the greatest tool imaginable. They could spend always spend less than they take in and keep the surplus in a rainy day fund...and use THOSE funds to bail themselves out when there are the inevitable occasional recession. Pretending this tool doesn't exist and then claiming an inability to address crises after the fact is no excuse. The fact is that the Greeks spent to much money. That was the first and primary mistake. All of the "tools" that the talking heads on CNBC and the boys at the FRB etc. talk about are destructive in their own way, it's just a different kind of destruction than whatever crisis they are responding too. At BEST they are 'the least bad' alternative after the country has already made the fundamental mistake of spending themselves into oblivion. It would be infinitely superior, with no real downside, to spend less in the first place.

I do agree that the US is no better...at the state or federal level. When our debt bubble pops, however, all the tools and all the countries in the world won't be able to fix that epic fail. In a way, Greece is better than us. Sure they were wildly irresponsible, but they also knew their economy was relatively small and they might be able to get a bailout from somewhere. We spend ourselves to death knowing full well that no bailout is even possible.

Dear Apple,
This is my second fucking letter. Please buy Greece.
Be Well,
Idaho.

Take?  What makes you think a foreign invader would take something?

The purpose will be to establish a central bank and put Greece on a currency that reinforces confidence.

By whom is a great question.  I predict Turkey.

I wonder......

Anymore M1s and HXP ammo coming?

Aloha, Mark

Thanks for the info.

Well, nobody should try to steal your smelly money.

Needs more "87" in your prediction...