Tuesday, April 27, 2010

Crucial Time.

Posted on : Apr, 27 2010

Dear All,

Coming days and weeks are very crucial. Germany has shown hesitance in bailing Greece out. Obviously it is keeping in mind that next candidates like Italy, Spain, Portugal, Ireland who will assume bailout if Greece is bailed out.

Now if Germany says No, I see 2 possibilities here one is IMF may still bail them out resulting is USD firming technically against EURO.

Another possibility is if Greece is allowed to fail. Well, this can again change rules of game. It can create massive short to mid term down tern in global equity markets.

Also in India RBI is speaking speaking and speaking about monitory tightening. If they really do so, time to come in short term will be tough, However if Greece is not bailed out and RBI does tightening it can obviate hyperinflation concerns in long term.

So let’s wait and watch.

P.S. Gold made all time high in EURO today in USD went up to 1170 if Greece fails we may see another All time High level in weeks to come.

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