The Greek Bailout

BarroMetrics Views: The Greek Bailout

The immediate reaction to the plans for Greek Bailout was a weakening of the US$.  But just what did the plan say? It provided for:

  1. Greece is to borrow from the markets what  it needs to pay its debts.
  2. If Greece is unable to do this, the EU and the IMF will provide what is needed.
  3. This advance is to be used only ‘as a last resort’ and requires the unanimous agreement of all euro-zone members.

The text did not elaborate on what event would qualify as a ‘last resort event’.

For me, the text represented a victory to the pro-German camp which did not want to come to the rescue. The French camp wanted a definitive bailout  package and non-involvement by the IMF. They clearly lost on the IMF issue and in my view, lost on the bailout. There is nothing in the text to suggest that Germany must agree to a bailout should the need arise.

The text was little more than a spin document whose effect was aimed at lifting the EUR.

The immediate effect on the EUR was positive. But the real test will come on Monday. My weekly video outlines some technical levels that can serve as benchmark in Monday’s price action.

7 thoughts on “The Greek Bailout”

  1. Hi Ray, I really enjoy your video analysis.I am a regular reader of your blog too. I am not a member of twitter etc,am i missing out more analysis or is it all here on the blog site? I have been reluctant because of stories about ID theft on Facebook etc. I dont trade the same markets as you but but your methods are really starting gel with me. I maybe a little slow but its starting to dawn on me,that this is really brilliant stuff.Quite often i have drawn similar conclusions to you but from a totally different line of question and reason. cheers Baz

  2. Hi Baz

    Glad you like the contribution.

    You don’t need to join the Fan Page on FB. If you are a member of the Video club, then you should be getting e-mails letting you know when I update the video comments on the Forum page.

    The Fan Page contains some freebies I come across from time to time.

  3. I think i am in your video club then as i receive yor video usually once a week on a Monday. But i never see the questions that others ask. I cant remember about updates,sorry as i trade irregular hours.But your work is really quite fantastic. I often joke, This guys got statistics on his statistics.cheers baz

  4. Hi Baz

    You also need to join the Forum service. I’ll have Kwok send you the details.

    Stats on stats! (G) – Good one.

    Not bad for a kid who still holds the record for getting ‘0s’ for the maths subjects and physics in his exams in secondary schoool! (G)

  5. Thanks Ray, I imagine when the book comes out “The Adventures of Young Ray” it will be quite motivational. cheers Baz

  6. Ray, have been following ur blog and ur weekly videos for some time now, found them very intresting, especially ur analysis,
    thanks for sharing the good work with individuals like us, any one even with 1/100th ur knowledge would not do this stuff for free

  7. Hi Ranadagger

    Hey great! Glad you like the material.

    Thank you for taking time to drop me a line. I really appreciate it.

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