Economy

Feb 3, 2012

Maley: a Greek writedown chain reaction?

Global equity markets have enjoyed the best start to the year since 1994, but their euphoric mood is about to be sorely tested.

Global equity markets have enjoyed the best start to the year since 1994, but their euphoric mood is about to be sorely tested.

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One thought on “Maley: a Greek writedown chain reaction?

  1. Steve777

    I don’t have any particular expertise in economics but I’m worried. This whole European debt thing seems to be a bit of a see-saw. The EU has a meeting, comes up with a plan, everyone cheers, markets go up. Then someone issues a dire warning, everyone panics, markets go down. Sometimes a ratings agency downgrades someone and there’s gloom all around. As if Ratings Agencies deserve any credibility after the GFC. It also begs the question of why institutions lent these vast amounts to Greece and other countries over the years – surely a reckoning was predictable way in advance.

    Why do I get the impression that no one knows what’s going on, let alone what to do about it. And any predictions by market gurus about where markets will go seem to be as reliable as if they had read goats’ entrails. Remember that this time last year most market analysts were predicting recovery, with the All Ords around 5600-5800 by the end of 2011.

    I confess to being a ‘free market sceptic’. We have this vast engine called ‘the Market’ at the core of the global economy, driven alternatively by greed and fear, running amuck, understood and controlled by no one. One day it will dive over a cliff with dire consequences for many – people could lose any or all of their livelihoods, homes and savings.

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