January 23, 2012
Where's The Press on This News?"
Marty Chenard at StockTiming.com made the following observation this morning:
“Conspicuously missing is the banter from the press about Greece. Bond holder negotiations stalled yesterday. Bond Holders wanted just over a 4% interest rate. The deal that was being dumped on them was just over a 65% loss on the face vale of the current bonds.
Germany wanted the banks to take a very small haircut on these negotiations because many banks would become insolvent if the amount is too much due of the leverage factor used by banks. This is a big deal, and one should wonder why the press is avoiding the topic as much as they are.
Also a concern not being discussed much, is Greece's dependency on Iranian oil to the tune of 14% of their total oil consumption. There was huge fear about this on Friday because if that oil was lost due to U.S. sanctions, then that would have a very negative effect on Greece's economy and its ability to meet its bond obligations. So, what happened last night? The European Union joined the U.S. sanctions recommendation and formally adopted an oil embargo against Iran. Greece immediately wanted oil protections from other countries to offset the embargo actions that would injure them. (Note: Iran is again rattling its sabre today about shutting down the Strait of Hormuz).
Tie all that to the British profit picture, and there are plenty of problems that our media seems to be overlooking or down playing.”
Marty’s site is excellent and he issues a free daily e-mail about the stock market or certain aspects of it. Usually, these are of a technical variety. That’s what makes this non-technical observation all the more interesting – and relevant. This Market STILL remains very much so, a headline-driven market and one should remain very cautious. Whether there is anything to Marty’s observation remains to be seen and I would not dismiss it.