Investorstoday

Wednesday, February 1, 2012

Germany Plays its Hand



Greek troika sees second bailout up to 145 bln euros-report


Angela Merkel casts doubt on saving Greece from financial meltdown


Eurozone crisis: angry Greeks condemn EU plot to control its finances


The Greek problem is finally reaching its endgame as Germany’s true motives have been revealed at the latest European summit.  Germany is tired of the lack of compliance by the Greeks and has issued an ultimatum.  Lose control of your finances or get out.  

The toughness of the German stance indicates that they are now willing to lose Greece if that means a stronger European Union. 

The Germans see the Greek’s as not willing to make the necessary cuts but trying to get the funds released in order to make the bond payment and then waging an anti-EU election campaign attempting to renegotiate the deal after the election. 

Germany is drawing a line in the sand with Greece sending a message to Portugal, Spain, Italy, and Ireland of what will happen if they suddenly decide to ask for a debt write down.  Unfortunately, Portugal may need a write down in order to get back on their feet.  The structural adjustments have been too difficult and they are continually falling short of targets. 

So where does this leave us?  Germany will force austerity on Greece and Europe creating a resolution.  If Greece does not go along they will be shown the door once again creating a resolution. 

A resolution to the problems which have dragged down European growth since last August is near.  How it plays out is still up for debate but either way Germany is not going to let this continue until the end of 2012. 

I am positive on the markets until mid-March where everything will begin to fall apart but until then manage your portfolios appropriately.  Watch your entry points and manage your stops.  The next move up will begin shortly and pull the market back to last year’s highs.  After that all bets are off. 

So far 2012 is playing out exactly as I expected and you can find more information in the 2012 Investment Forecast.

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Two weeks ago I did an interview with investortoday.ca on 2012.  For those regular readers I am more bullish there than my general commentary for good reason.  Please feel free to check it out and as a reminder the 2012 Investment Forecast is now available.

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The 2012 Investment Forecast is now available!!!!

Thank you for your patience. 
The 2012 Investment Forecast is finally finished and ready for sale.  My apologies for the final week’s delay as my original outlet caused some unnecessary consternation forcing me to seek a different outlet.
I am pleased to say that the 2012 Investment Forecast is available through smartwords.com, the world’s largest independent ebook distributor, by clicking here.
Smartwords distributes to Apple, Barnes & Noble, Sony, Kobo, Diesel, and others along with instructions on downloading to your Kindle meaning that this and future work will be available in multiple formats from mobi to ebook to pdf. 
As a sign of forgiveness for being so late I am dropping the price from $20 to $15.  Quarterly commentaries will be priced at $5 while next year the yearly forecast will return to $20. 
If you wish to place a banner ad and help distribute the 2012 Investment Forecast and future works I am offering a 25% commission on all sales.  You can find more information here:  http://www.smashwords.com/about/affiliate

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