Tuesday, June 21, 2011
Austerity moves forward in Greece
12:02 pm (Hawaii) Just back from a productive trip to the "earth" store where I got me some useful tools, pots, soil and a lot of vegetable babies. Whether I can actually grow them to fruition remains to be seen, but I'm excited. As for the market, it remains as green as it was earlier today now that the prime minister of Greece got his first step toward austerity approved in the past hour by a vote of 155-145.
It's not like they're going full bore on this. They sell off some islands, they get some loans. Nothing more. But it's a step forward. Now the dominoes fall across Euro land, and eventually to the US. No excuses any more, not for people who ran up more debt than they possibly could've afford, but far more so for the banksters who did, well, their usual thing. For now, financials are happy and green, but in time, they will plod along until they get shredded into fertilizer. The Fed can't fund them forever. It just seems like it.
EXK is now at its high of the day (8.58). It was at 8.44 when I woke up midway through the session. XG has pushed higher, from 11.99 at mid-day to 12.25 now.
This temporary bliss is good for bulls and traders, and a bounce was due. This is a real bounce, fortified by volume. But it's not entirely convincing. There's low volume in a enough equities to keep me very cautious. I'm still in neutral mode, 90% cash. Maybe I'll step in for a quick trade in EXK or XG tomorrow morning. Maybe AG or AGQ. Maybe add more DGP. But there will be no touching of FAZ for now. Still too many questions out there. How much worse will our national debt be by the time we actually face default after the next election?
Time to pot some plants. When stuff hits the fan sometime soon, I need to be able to grow some food, don't I?