heading back in the red, page-7

Greece and FOMC will drive the market next wk. Both events have MORE probability of disappointing the markets than cheering up.

whichever solution for Greece has a big risk. Forced private sector rollover would be treated as default and of course, contagion fear will trigger selloff (yeah again and again). According to Angie on Friday, she would only seek voluntary rollover - means more German and French tax payers' money. German parliament already expressed their stance earlier this month that private sector should be cornered to accept the rollover or haircut (whatever the term that starts with "re").

Even though Germany is a big boy in Eurogroup, they can't decide everything themselves. The Dutch government,earlier this month, expressed their disapproval of governments-only bailout. They were really supporting German Fin. min. Wolfgang Schaeuble when he was advocating forced private sector rollover.

In the end, Greece simply doesn't have capacity to repay existing debt and bailouts, let alone the new ones.

Markets are clearly in a downtrend regardless of how good the companies are. Don't fight the trend.

As John Maynard Keynes' quote - "The market can stay irrational longer than you can stay solvent". May be this time, "you" in the quote is meant for Greece.