I was shorting into the close today though I think the odds are we have a little bit more to go. That of course assuming the high is in for the year. The buying interest actually picked up into the close which is probably short term bullish. It was interesting that Greece spreads started blowing wider again and very quietly Dubai is getting close to its highs. These two won't topple the markets but I am comparing them to New Century Financial / Bear Stearns. As systemic risk worldwide increases, the pressure cotinues to build in the markets.
Interesting article in the UK Guarian which can be read here:
Greece Prime Minister was on tv appealing to the nation to make "brave decisions." Anytime CEOs of companies start doing televised interviews saying everything is okay, some changes just need to be made, you need know your close to the end. AKA - Bear Stearns CEO, Lehman CEO, Washington Mutual CEO, etc.
Greece's embattled prime minister, George Papandreou, tonight appealed to the patriotism of his compatriots by pleading for "national consensus" in pulling the country out of its worst fiscal crisis in decades.
In a rare televised address, the socialist leader said it was the duty of Greeks to help extract their homeland from an economic morass that has seen its debt balloon to a staggering €300bn (£262bn), with potentially disastrous effects for the eurozone. "The time has come to take brave decisions here in Greece just as other countries in Europe have also taken," he said. "We all have a debt and duty towards our homeland to work together at this difficult time to protect our economy."
This is hilarious:
The socialists have pledged to cut the budget deficit from 12.7% of GDP to the EU's permitted level of 3% by 2012.
and the problem and why the previous pledge is hilarious
Although many Greeks appear to have accepted the severity of the situation and the need for sacrifices to be made, after weeks of being bombarded by bad news, a backlash is already brewing among leftwingers and trade unions.