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Greek Debt Crisis Won’t Be Over Soon
10/07/2011 6:30 am EST
For those hoping for Greece to default already, so the markets can take the hit and move on, MoneyShow’s Jim Jubak has some sad news.
I bet you were thinking—well, maybe hoping is a better word—that this whole Euro thing would be over, because Greece was going to run out of money by October 10, and they were going to have to get some kind of deal done on that timeline.
Well, you know what they say? Be careful what you wish for, because it’s clear that the deadline is now sliding even further. We’ve had European officials come out and say, if the Greeks really don’t run out of money on October 10, they can do this and that and shift money around and do budgetary tricks.
The real deadline for Greece running out of money is now the end of October. Now this would not be important if the process wasn’t being driven by crisis, if this were a process where people were sitting down and going, "Oh, OK, this is our schedule, we’re going to hold to the schedule no matter what."
What you’ve really got here is a sense of a crisis that is only going to get solved when it gets to be really, really at the door. I mean they’re not going to do anything about the wolf until the wolf is pounding there and saying, "Grandma, Grandma."
So the fact that it says the 30th, and that now seems to be where we are, means that this crisis is really going to drag on for the entire month of October.
We’re going to see minor changes, we’re going to see worries, we’re going to see all this playing out in public. Which as the events of the last couple of weeks prove, every time we do this in public, the market goes kind of nuts one way or another, so we get lots of volatility related to the continued Euro drama.
I don’t think there’s any way around this. I think it will get solved temporarily. I think Greece is still looking at a default, but sometime in maybe December, January, or February, or some time in 2012…not in October.
So this really means that we’re going to have a lot of sturm und drang, an old German expression, through the month of October. Just deal with it. What else can you say?
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