Interest rates and comments on the continuing situation with Greece
We continue to chat about long term interest rate with Chris but then move into the situation with Greece. As the now June 30th deadline approaches what do we all think is going to happen.
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Jerry/Frank, The hedge fund managers are now piling into shorting the Canadian housing market, well blow me to Bermuda, Bermuda shorts that is. DT
Better tell Bill………….. 🙂
I think that is a good idea , btw………..thanks DT
Can you explain exactly how one would short the Canadian housing market, DT? It seems to me the only option is shorting the banks and in that case its a pretty stupid move. Housing could fall considerably but that sure does not mean that mortgages will not be paid. And look at the low default rate even during hard times. Good thing for the banks Canadians are good at paying the bill. So what else is there?………nothing. Not like there was in the US anyway. Even the building supply companies are hardly worth the effort since so many have American parentage and the Canadian component is therefore a wash. Or maybe you refer to REITS. But I don’t see a revenues crash coming. Do you?
So do we get a massive rally in conventional stocks when they announce the fudge ‘Greece is saved’ deal?
No
So we are going to get more of the same over the summer – stocks trending sideways supported by the Fed, looking exhausted. No energy to go significantly higher but propped up so that they do not fall.
Surely it makes more sense to allow a few hundred points off the S&P now and then it can all go roaring onwards and upwards into Autumn/Christmas.
Bob UK,
I think you are correct. Once we get done with this correction, the stocks go higher until fall. Then, clear out.
I wonder whether we will have a final correction next week because of Greece… and then that will be enough for to allow the markets to go to new highs. Some kind of intervention from the ECB, BOE and FED to soothe over turmoil caused by Greece?
Please stop saying fudge.
Hi Chris,
Do you see potential in the oversold MEI (Methode Electronics)? It has a solid balance sheet.
Its drop did catch my eye and I’m going to check it out. Generally speaking, the auto industry is overbuilt…don’t know if MEI’s light guidance will become a trend. Good catch on this one though…might be some value here.
I just received an email suggesting that Greece might impose capital controls if the banks don’t close their doors this weekend.
GREEKS READY FOR ELECTIONS………….plan B………they will not be bullied ….zerohedge
Elections don’t pay debts
Interesting…a referendum had been threatened a while back. Good move by Tsipras to have cover to run from the euro if the voters agree.
Can they just print euro bill illegally anyway? At this stage, there is nothing to lose.
No Lawrence. That would amount to an act of war. It is improbable Greece would take to counterfeiting Euro to keep the bank machines stocked. You can only imagine the consequences once word got out. The Euro would tumble dramatically while the banks would do their best to suck surplus cash out of the system and anything bills with a Greek code would become worthless overnight. And that’s just the beginnings of the troubles. The mint is however very busy printing already. But there are allotments and limits. If you were thinking they could just go Weimar though and flood the country with notes the consequences would be worse than the solution.
Four 4 yrs. of guessing the obvious……….GREECE IS BROKE., GREECE has already defaulted………