Terry Connelly is dean of the Ageno School of Business at Golden Gate University and is frequently quoted on business, financial, and economic issues by Bay Area local, as well as national, news media.
It’s Greek to me! A year ago the financial markets were treated to a series of rumors in the wake of the run on Greek sovereign debt: Greece would leave the Euro; Germany would leave the Euro; the Euro would go to par with the US dollar; the Euro would collapse. NONE OF THIS HAPPENED, but the credibility of catastrophic thinking among gullible traders made selected shorts a ton of money as the Dow flashed and crashed and those who were “smart” enough to play this game from the inside reaped a fortune when the markets turned up again beginning in July.n At bottom, it is apparent that some of those who missed the first quarter stock market rally in 2010 engineered a lower “entry point’ by manipulative rumor-mongering, counting on 24-hour cable to megaphone their artificial doom-and-gloom scenarios because they constituted “stories” that would hold audience attention, as compared with stories like Germany not leaving Euro, the Euro retaining its value against dollar, or Greece not restructuring its debt — all of which were of course true but of little interest to the news editors or commentators on Bloomberg or CNBC.
So, as this movie starts its rerun this May with the Friday article in Spiegel Online, just remember as you hold on to your market wallets — we’ve seen this movie before!
Filed under: Uncategorized, Euro, Greek debt, US dollar' CNBC
