Technical & Fundamental Oil Reports Specialists

Follow us

Switch on the seat belt sign

Published Monday, June 15th, 2015

The week began with Greece threatening to default bringing down the eurozone and generating the next financial crisis. The week ended exactly the same way. How boring financial news would be without Greece. Drama, tragedy, treachery and comedy all rolled into one. According to the IMF spokesman there are still “major differences of opinion between us in most key areas” so its team has left the negotiating table. The IMF has already broken most of its rules in agreeing to be part of the second bailout and is not prepared to be dragged deeper into the morass. This is a European problem, entirely of the eurozone’s own making so let them get on with it, is the implied IMF position.

The money already lent to Greece will never be repaid and it is time to stop pretending and accept that the real choices are either default or a debt write-off. For all the dire warnings of the consequences of letting Greece default, stock market strength suggests that investors clearly do not see it bringing down the eurozone and triggering a crisis. They are uneasy but not rattled enough to run for cover, believing that there will be a last minute fudge or the fallout will be contained.

to read the rest of the report, please click here

Posted by David Hufton