Tuesday, June 19, 2012

Final Act of the Greek Tragedy

Extend and Pretend is running out of time. Germany has made its intentions clear, as these two articles point out. What I can't figure is why the markets are not absorbing this fact. Time to buy some good 'fat-tail' options.

http://www.ft.com/intl/cms/s/0/3588be46-b8ab-11e1-a2d6-00144feabdc0.html#axzz1yI4pmKxL
http://www.ft.com/intl/cms/s/0/a438a8a6-b8ab-11e1-a2d6-00144feabdc0.html#axzz1yI4pmKxL

Hang On! This analysis shows that the 'half-life' of positive news flow is decaying fast. This would suggest that events could unwind very rapidly, very soon.

http://si.wsj.net/public/resources/images/OB-TK979_EUROHE_G_20120619151633.jpg