Monday, May 14, 2012

Don't short the euro

Don't believe what they say on TV and write in the papers that Greece will leave the eurozone and go into full default after a new election will be held. Much more likely is the following scenario:
- Greece will form a new government based on the recent election results
- Greece will implement the austerity program
- Greece will get additional EU assistance for behaving well
- Greece will stay in the eurozone
- There won't be further contagion
- US financial interest groups want a second term for Obama
- Blaming the US non-recovery on Europe serves Wall Street and Obama well
- As long as these groupos succeed in making the eurozone appear sicker than it is, the US can be sold as being healthier than it really is.

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