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Greece Crisis bigger than Euro Zone

by on May.17, 2012, under Asia-Pacific, Daily Buzz, E-Toro, Eurozone/Africom, Finance, Forex, Forex Million Dollar Journey, General, Madrantz Espanol, Rant of The Day, The Americas, World-Regional

Internal Revenue problems are only part of the larger picture.

Nearly every economist has their own crazy story about the Greek economy (for example, there are only a handful of people registered as millionaires for tax purposes in Greece but 250,000 private swimming pools). Tax evasion and corruption in the public sector are endemic in Greece. The Greek government finds it impossible to collect the taxes that it needs to keep a lid on public spending. Membership to the Euro is preventing Greece from devaluing its currency to make exports cheaper and to increase tourism.

A potentially longer-term risk from Greece’s retroactive CACs lies in what Charles Blitzer, a former IMF staffer involved in a series of restructurings, described as the “knock-off effect on peripheral euro-zone countries.” He argues that “exchanging the underlying law of sovereign bonds ex-post is entirely unprecedented” and creates a negative precedent in the euro-zone bond market.

For now, many market participants remain sanguine about the risk of a restructuring in Portugal, another bailout recipient that’s often portrayed as the next domino after Greece. Deutsche Bank analysts argued in a recent research note that “the comparisons between Portugal and Greece are overdone,” citing a better “political configuration in Lisbon,” its more aggressive delivery of “fiscal retrenchment,” and that fact that its “public debt is unlikely to get to Greece’s staggering levels.”

So how can you protect your assets and investments? Commodities, which often stood in as a safe haven or hedge against Stock Market Risk are on the decline. What is left? Forex! Forex provides you a completely safe hedge against the Euro-Zone Crisis. A hedge against falling commodity prices. The ability to switch your strategy to match the news of the hour and potential earnings many more times the return you could get from hedge funds or ETFs is the only literal way to safely trade your money in the Financial Markets when the only other logical decision is to pull your cash out of the markets. Forex is often overlooked but is the only solution to not being able to invest and earn a return while the Global Stock Markets are in disarray and too volatile to trade.

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Real-Time Market Insights Hot Stock News for Options Traders

by on May.17, 2012, under Asia-Pacific, Daily Buzz, E-Toro, Eurozone/Africom, Finance, Forex, Forex Million Dollar Journey, General, Madrantz Espanol, The Americas, World-Regional

Stock News for Options Traders

After losing ground in the last four trading sessions, futures on the Dow Jones Industrial Average (DJI) are wallowing in the red ahead of the bell. In fact, it could be another ugly day for U.S. stocks, with the S&P 500 Index (SPX) and the Nasdaq Composite (COMP) falling in step with European markets.

  • Schaeffer’s Senior Technical Strategist Ryan Detrick observed how a supposedly bearish signal on the SPX may have bullish tendencies.
  • Amid broad-market weakness, Schaeffer’s Equities Analyst Bryan Sapp breaks down potential opportunities in the outperforming SPDR S&P Biotech ETF (XBI).

Among equities in focus, Wal-Mart Stores (WMT) is on pace to enjoy a post-earnings pop; short sellers piled on Red Robin Gourmet Burgers (RRGB) in the weeks leading up to its quarterly announcement; and, near-term calls were the options of choice on Hot Topic (HOTT) ahead of earnings.

Currencies and Commodities

  • The U.S. dollar index is pointed north this morning, with the greenback 0.2% higher at $81.54.
  • Crude oil is churning around breakeven, with crude for June delivery last seen at $93.20 per barrel.
  • After closing at their lowest level in 10 months, gold futures are on the rebound, with the malleable metal up 0.7% at $1,546.60 an ounce.
Currencies and commodities

 

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