Contrary to many believing the capital markets are being schizophrenic, we wanted to briefly explain what has happened in the last 24 hours to turn Dr. Jekel into Mr. Hyde!
The recent (late last week) positive movements in the global capital markets were spurred by a very large (> $1 Trillion) rescue package doled out by France and Germany. The respective big brother countries carefully orchestrated a joint effort that all 17 EU countries would participate. Greece, and other potential financially troubled little brother countries would have a VERY large checkbook to keep their respective governments in the black.
Last night, while most of us were still sleeping, the Greek prime minister tossed a rock at his big brother countries and announced he would hold a vote to approve the big brother funding. We cannot make this up !
Big Brother is offering funds to keep Little Brother in the black, but little brother, flexing his muscles, decided to vote.
Maybe next they will roll up their sleeves and fight ! Kidding of course!
Diversification and prudence continues to be our best friend.
Have a Great Day!