Market movement
2010 February 12
Two great articles here and here explain why the equities markets are registering one or two percentage point hiccups in response to reported fears of a Greek sovereign debt default which could lead to the dissolution of the Euro and global financial catastrophe. The Markets actually don’t think that it is going to happen, they are just responding to whether they think that hedge fund pressure on Greek debt swaps will rapidly strengthen the dollar enough to force those still plying the dollar carry trade at this late date to cover their dollar denominated debts with liquid US assets.
No comments yet