Greeks vote NO and send futures to abyss

Here we go again. Now I can say I thought Greeks would reject the Euro-offer, but before that I didn’t dare to say it. What if they chose the opposite, right?

I must say that this vote contains so much stupidity in it that it stunned me a lot. If we take off all the gravy around all we see is the following:

 

 

 

  • European creditors lent tons of money to Greeks in exchange for Greeks to change the way they spend it (such as reducing pensions, salaries, and other expenses; and change the overall budget structure)
  • Greeks are unwilling to do that and consider the creditors’ request a blackmailing.
  • Greeks reject the creditors and their conditions for further financing.
  • Greeks are stupid then.

 

If European and international creditors stop funding whatsoever, Greece would bankrupt and follow Argentina’s path. With “Yes” vote they could follow the Cyprus path and it would hurt less. Now Greece is going into a big financial turmoil and, now mark my words, it will make Greeks even more furious about their government once they find out what’s ahead of them.

 

You may be interested in:
Euro slips, bonds rally on Greek upset By Wayne Cole at Reuters via Yahoo Finance
 
What Greece means to the US By Sam Ro at Business Insider via Yahoo Finance

 

And what about the rest of us? The taxpayers who are indirectly pouring money into the Greek economy and being blackmailed by the Greek socialist government? Should we be worried?

The Greek economy contributes into entire Eurozone by 2%. It is miniscule and it will have no or little impact to the European and even smaller impact to the global economy.

Yet Wall Street is freaking out again:

SPX futures

Next week will be interesting again. Will the market recover this or are we going to have more surprises?
 
 





4 responses to “Greeks vote NO and send futures to abyss”

  1. Well as of tonight it looks like the Germans are going to accept the Greeks’ new offer. Looks like the Germans got everything they wanted.

    • Martin says:

      Tony, of course. Tsipras knew his demands are not sustainable and he was playing all or nothing, but got scared of “nothing” which would be worse for Greece than austerity.

  2. Martin says:

    Another crazy day at Wall Street. The market went down big to 2040 and by 2 pm it recovered all losses. As of now it is trading at 2066. An impressive intraday move. This morning I could open another Iron Condor taking advantage of volatility and bank another $75 dollars income. That income is not mine yet. If this condor expires worthless, it will be mine. Since I am selling way down below 2SD (standard deviation) this trade will most likely expire worthless.

    I am successfully building my ladder with 45 DTE options. In three weeks I will start seeing expiration every week (so no longer waiting for expiration) and that’s where the big bucks start rolling in!

  3. Martin says:

    Now, after the NO vote it all depends on the European politicians. Will they have balls to cut Greece off or will they bow in front of Tsipras and try to keep Greece in Eurozone at all cost? Today, politicians are full of political correctness and fear of not offending or hurting anyone, so I wouldn’t be surprised if they come back and start negotiating with Greeks prolonging the agony.

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