It appears that some of the emerging markets are getting soft in light of the situation occurring in Greece/Europe. Take a look at the chart below. It shows that even with all of the discussions by the EU and Greek politicians, there is still underlying trouble. In fact, just today, even after significant cuts and efforts by the Greek government to reign in the deficit, it was once again shown to have increased.
Greece’s default bets ares now reaching maximum velocity and intervention is required. No more pandering, no more rhetoric…
Markets in Europe were not at all looking at this in a positive light. Add this to the problems they are having with the overhang from the Icelandic volcano, and Europe does not appear to be the strongest grouping right now. Moody’s also downgraded the debt of Greece and Athens today.
Surely there will be a magic hand that will fix all of this. But will it be a band-aid or…?