Technical & Fundamental Oil Reports Specialists

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Dust off your Drachmas

Published Wednesday, February 18th, 2015

Time to search once again in that holiday draw where you stash all your old currency leftovers and dig out your drachmas. While you are at it, sort out your euros so that the next ones you spend have a serial number beginning with a G. This is a just in case measure you understand, because the Greeks and the financial markets still believe that there will eventually be a compromise.

Somebody is going to have to perform a U-turn and ‘noises off’ point to that being the Greeks. It may be sugar coated in the wording they want, but it will be a climb-down. If they do not the next step is exit and the signs are that the financial markets are less alarmed about that than politicians. Contagion fears are widely exaggerated and eurozone finance ministers, or “technocrats” as Alex Tsipras insultingly likes to call them, we suspect are prepared to go all the way with their brinksmanship because they believe that the disadvantages of keeping Greece in the eurozone under the terms Syriza is demanding exceed the advantages. Tsipras believes that eurozone leaders are a softer touch and are more easily panicked.

to read the rest of the report, please click here

Posted by David Hufton