Surprise, Greece Has No Money

It just seems to this observer that the Greek kabuki dance is never ending. How can banks keep lending money to a country that is insolvent? That seems a little backward and just stupid to me. What do you think of the situation in Greece?

Here's the reality of the situation, Greece is going to default, the bankers may as well get ready to write off those loans as the money is not coming back. The next question is, whose next, Portugal, Spain or Italy? The next buzzword that is going to come out of all this is contagion. I think when Greece exits the eurozone it will be good for the euro longer-term. Think of it like when a company announces bad earnings and fires the CEO. The stock price has anticipated and discounted all the bad news and for the most part things get better over time for that company. The euro is the same way as pretty much all the bad news is out, except the actual exit of Greece from the euro.

Sooner or later it's going to come to crunch time and time is getting short. Angela Merkel and Germany are going to have to swallow their pride and make some important decisions very soon.

So onto the only economy that seems to be working and that is the US. Today I'm are going to be looking at the major indices to see if they are beginning to tire or getting ready for another upward push.

I'm also going to be looking at three stocks today.

Public Service Enterprise Group Inc. (NYSE:PEG)
Public Service Enterprise Group Inc. through its subsidiaries, operates as an energy company primarily in the Northeastern and Mid-Atlantic United States. The company operates nuclear, coal, gas, oil-fired, and renewable generation facilities with a generation capacity of approximately 13,146 megawatts. It sells electricity, natural gas, emissions credits, and a series of energy-related products that are used to optimize the operation of the energy grid. The company also transmits electricity; and distributes electricity and gas to residential, commercial, and industrial customers, as well as invests in solar generation projects, and implements energy efficiency and demand response programs.

Alibaba Group Holding Limited (NYSE:BABA)
Alibaba Group Holding Limited through its subsidiaries, operates as an online and mobile commerce company in the Peoples Republic of China and internationally. It operates Taobao Marketplace, an online shopping destination; Tmall, a third-party platform for brands and retailers; Juhuasuan, a group buying marketplace; Alibaba.com, an online business-to-business marketplace that focuses on global trade among businesses; 1688.com, an online wholesale marketplace; and AliExpress, a consumer marketplace. The company also provides pay-for-performance and display marketing services through its Alimama marketing technology platform; Taobao Ad Network and Exchange (TANX), a real-time online advertising exchange in China; and data management platform that allows participants on TANX to evaluate and select online advertising inventory using behavioral data, as well as data from browsing behavior and shopping history.

Tyson Foods Inc. (NYSE:TSN)
Tyson Foods Inc. together with its subsidiaries, produces, distributes, and markets chicken, beef, pork, prepared foods, and related allied products worldwide. The company breeds and raises chickens; and processes live chickens into fresh, frozen, and value-added chicken products. It also processes live fed cattle, and live market hogs and allied products; fabricates pork and dressed beef carcasses into primal and sub-primal cuts and case-ready products; and sells hides and meats. In addition, the company manufactures and markets frozen and refrigerated food products, such as pepperoni, bacon, beef and pork pizza toppings, pizza crusts, flour and corn tortilla products, appetizers, prepared meals, ethnic foods, soups, sauces, side dishes, meat dishes, and processed meats. It sells its products through sales staff, independent brokers, and trading companies primarily under Tyson, Jimmy Dean, Hillshire Farm, Sara Lee frozen bakery, Ball Park, Wright, Aidells, and State Fair brand names.

I will also be taking a look at gold which dived below the $1200 level today, crude oil and the US dollar.

It looks like it's going to be a great summer with lots of trading opportunities. It is my goal and mission to help you find them with MarketClub's Trade Triangle technology.

Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

23 thoughts on “Surprise, Greece Has No Money

  1. Petros P. seems to be a liberal disguised as a conservative. enough of your deceptive, Obamaesque double talk! I can see through you like a window pane! your comments here are no longer welcome. cease and desist, your morally corrupt.

    1. Speak about yourself buddy not about others πŸ™‚
      If you dont like this site you are free to go somewhere else.

  2. I want to see a show of hands! Who things the new government of Greece he is working in the best interest of the public? When in history has that ever happened?! Wake up and open your eyes! What happened to Russia in the early 19 hundreds, Communist China, and every other like so country? Jebeezus, you guys deal in insanity and hypocrisy. Grow a pair! stop dragging the world down.

    1. If Greece has the ability to drag the whole world economy down, that means the world economy is in very very bad shape my friend πŸ™‚

  3. Europe has to rip Greece off like a bandaid. if they don't the wound is only going to fester and get worse! why are there liberals on this site? I thought liberals thought capitalism is evil.

    1. Unfortunately libtards are everywhere nowdays, in governments, schools, colleges, military, why would this site be an exception? πŸ˜›

  4. Greece is like a 16 ton weight tied around Europe's neck while balancing above a shark pit. I never should have accepted the bailout in the first place.

  5. Here,here? kick that leftist country out of the union. all that gold they say they have is only a drop in the bucket when it comes to that debt

    1. It's not that easy, if it was believe me they would have done it already πŸ™‚

  6. let Greece go, have been wishing this for a long time. I myself am a German National but have been living in the States for most of my life. However, I still will hold ties to whom and what I am (European). Have worked in the Investment Brokerage field for some 30 years in one way or another and see what happens when parts of companies fail. In the business world they have to cut the cancer.
    With Greece wanting to continuously change the rules that they had originally agreed upon without making the changes asked of them then it is time to say sorry and goodbye. It will be a very harsh road for them, but sometimes that is the best way to go about it. Maybe they will realize that the world works as a team and that everyone needs to work together.
    Now as for the U.S.. May comments had been made about its strengths as a safe haven but what about all that money being printed? What is the true numbers and how will the U.S. back all the paper floating around along with the T Bills issued. Does Fort Knox really have the gold they say we hold? and if so then why will they not allow an audit of the vaults? Both congress and the senate has asked for an audit along with countries that hold gold in safe keeping.
    In the past many South American countries had defaulted which cost the U.S. a massive amount of money. But to the most part they had come out wiser and better organized since. One thing for Greece to understand is the it will not be all roses and most countries, companies, people will not want to hold the Drachma. They need to think of Zimbabwe (I think I have the correct country) and the 10mil to one disparity of the currency. Decades have gone by and they still are in the Sh*T.

  7. You are comparing Greece to USA? If the Greeks had a printing press to produce fiat money and a banking system that is accountable to no one (fed) plus influence don't you thing they will be in the same boat as US. Read below about the IMF and WB. And then talk to me baby. By the way if you possess a scholastic degree may I ask where did you receive it?

    http://www.globalexchange.org/resources/wbimf/oppose

  8. those are the European Central Bank that are lending them the money you dodo! the money they collected from the people's taxes,duh...

  9. to the bleeding heart liberal said its not all about us:
    you have a job? give it to me then!
    do you have a wife? give her to me then!
    you're right it's not all about you!

  10. I think that Greece should only be required to pay a percentage of what was lent to them. Any bank that uses bribery and governmental corruption to lend money to an country that cannot now and never could repay - on the assumption that wealthier nations will bail out the loan - needs to write off a fraction of the loan. I'm sick of crooked bankers who get ever richer while ordinary people get ever poorer.

  11. Angela Merkel and Germany will make decisions to drop Greece, which will make a hard example to the Euro Zone members on financial responsibilities. The buzzword will be contagion! I don't think the market has anticipated and discounted all the bad news at all. I have been trading for decades and am always amused at this statement and how wrong it can be. 2009 was not long ago. Credit will,again, dry to different levels. I bet people will again flock to the US dollar with the perception of safety. I also think it will be good for the Euro longer-term. As for, β€œthe only economy that seems to be working is the US”? β€œSix years after the recession ended, many U.S. states are hard pressed to balance budgets because of a sluggish recovery and their own policy decisions. The fiscal fragility raises questions about how they will weather the next economic downturn”. Not to mention the, overall US deficit.

    1. They are not that dumb to let a country leave the Euro, they know other countries (Italy, Spain, Portugal) will soon follow and that will be the end of the Eurozone...
      As far as the dollar being a safety haven, it used to be before the Fed started to print massive amount of dollars out of thin air.

      1. Greece is leaving the Euro. The only question is when and how. Will Italy, Spain, and Portugal go next? Who knows? It's all a grand experiment. Maybe the whole thing falls apart, maybe it grows stronger without the weak Southern neighbors....nobody knows.

        The US Dollar will continue to be a safe haven for the next several years. Thirty years from now? Maybe not, depends on how we manage our fiscal house. The Fed printed many dollars. Have you seen what the Japanese have done and continue to do? The Euro might be about to disintegrate. The renmibi will continue to grow in stature on the world stage, but it has been manipulated for decades (and continues to be.) So I ask you, which of these would you choose if the proverbial sh*t hit the fan in 2016?

        For God's sake, please don't talk to me about gold being an international currency, not enough of it exists to support world economic activity. I am long (and overweight) gold and gold miners so don't accuse me of hating the barbarous relic. I just see it for what it is now, a commodity to speculate on, long and short. I plan to be long over the next 4-5 months then reducing or even eliminating the long position. Of course, this is all subject to change if I wake up on a different side of the bed tomorrow. πŸ™‚

        1. Thirty years from now ? The dollar will lose its reserve status much faster than that, it is already happening as we speak.

  12. America is in the worst shape. 25 percent receiving food stamps. A population that can't afford 4 dollar has. A country that has no will power.

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