The big threat is contagion brought on by a Greek default, if Greece defaults on its debt payments/obligation, countries like Portugal, Italy, Spain etc are then put under more stress as they don't receive their yeilds, as well as the mentioned countries bonds (borrowing costs) start sky rocketing as people start to bet on the next country that will fall.
There are very worrying things happening at the moment that is really threatening the global economy. I think the chances that the ECB will start printing money to go for a more growth strategy, loosening monetry policy and dropping interest rates further is a big chance, this will inflate commodity prices and likely send inflation up significantly. QE3 is a possibility in the US as their employment gains are loosing steam.
Keeping some $ on the sidelines, could be some bargains in coming weeks.
GEV Price at posting:
13.0¢ Sentiment: None Disclosure: Not Held
