Get ready for the vote in Greece

An article by Gus    No Comments

Another week, another crucial moment in the euro crisis. Leaving aside the Groundhog Day resemblance, here’s how to trade Greece’s upcoming austerity vote. You would think that after a certain number of these crucial events, investors would develop a thick skin about the play by play in the euro crisis. But that certainly wasn’t the case on Friday, when the eurobroke through $1.42 and we started seeing liquidity in the currency markets drying up a bit.

Problem is, the drama and confusion are likely to continue. “At the end of the day, you’ve got 27 EU countries. You’ve got a central banker for each one, a finance minister for each one, a number of politicians who just like to talk to the press for each one, plus the European Central Bank, plus the EU, plus the European Council…of course you’re going to get conflicting signals.” Ordinary investors confronted with all this may well decide to just stay away.

Greece’s vote Tuesday on new austerity measures won’t help matters, Busch says. “If they pass the austerity measures, there are going to be riots in the streets. People are going to be burning things. If they don’t pass it, the financial markets are burned. Either way, this is a lose lose, and I just don’t like the euro at all.”

We will see how this all turns out, but it is not looking good, time to get out of the euro.

Gus FX