Rob's 9th guest post on 'Saving The Euro'
Lost for words - and that is rare.
Conspiracy theorists once again out in abundance and are suggesting that he was persuaded out of his sick bed by a call from the above dynamic duo – if so, I wonder what promises were made, I wouldn't even draw the line at a financial inducement to be honest. What is a few million Euros against the fate of the Euro zone?
Greek TV and state news agency declare that Papendreou is resigning and a new government will be formed.
Markets begin an immediate rally on the basis that referendum is now very unlikely.
An hour later – all change, they got it wrong, markets immediately drop again.
Papendreou then comes out with a completely bonkers statement saying that he didn't really plan to go through with a referendum anyway…..and he has no intention of voluntarily resigning.
Markets are in complete limbo at the moment, they don't know what to do – if somebody had written a fictional book with this as the story line it would have been deemed total rubbish and complete fantasy, but here we have it.
Total madness – I don't actually think that he is looking past his own personal position, and that millions of jobs etc. are at risk.
Markets hate uncertainty, and the slightest comment one way or the other will have them jumping through hoops.
The one question I would ask is where are the other members of the Euro zone, you only ever see Merkel and Sarkozy – it seems to have become their private little club?
If I had my trader's hat on at the moment I would be running no positions, turning my phones off and reading a good book until it was all over – any position taken now would be simply a gamble on the toss of a coin – heads you win, tails you lose with nothing in between.
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The author, Rob (not his real name), is a treasury manager at one of UK's largest charities
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