As the whole world watches, Greeks ready themselves for a historic vote this weekend that could determine their future in the EU. As an article in the Wall Street Journal reports, Greeks are preparing for the worst.
What’s interesting, as I spoke about today on 99.1 FM talk in Reno, investors are focusing with one eye on Greece, and Spain with another. After short lived euphoria from the Spanish requesting funds to recapitalize its banking system, feelings turned to fear as worries about Spain’s own ability to pay back these loans arose. This is the exact situation EU politicians said they wanted to prevent.
In light of this, markets continued to rally today as investors anticipate the Federal Reserve to at least continue their latest stimulus, or embark on a completely new scheme. New reads on inflation and initial jobless claims added to the conviction that the Fed will do something, but in the face of already historic low interest rates, there is a question of what they actually can do.