Greece Is the Word

 | Jan 17, 2012 | 9:00 AM EST
  • Comment
  • Print Print
  • Print

The eurozone is the Golden Globes to Wall Street's Academy Awards. It is something to watch and definitely can have a box-office effect, but it is mainly focused on for how it influences the main event.

And for the eurozone and the Golden Globes, handicappers shouldn't be distracted by the pre-show glitz at the expense of the actual substance.

Looking at all the Golden Globes commercials you would think there was nothing important except the red-carpet fashion and Ricky Gervais' guaranteed-to-be iconoclastic and edgy jokes (such as insinuating that Madonna may not be the most virtuous of people -- earth shattering). But the real impact is how the awards are marketed for an Oscar run. Suddenly I'm seeing ads for "The Artist" everywhere.

Over the long weekend, the Europe attention has been on the EFSF and eurozone downgrades. But that's the pre-show glitz. The real impact will come from the negotiations in Greece.

Greece is the closest it's been through this whole debt debacle to throwing in the towel and defaulting. It has negotiations coming up with creditors, which don't look promising, and it is yet to push through many of its promised austerity measures and can't get the political backing to do so.

Fitch is basically calling time on the whole thing and saying Greece will default.

Two years ago at Davos, the message that economists told me was that Greece is bankrupt. For two years the EU has been trying to figure a way for that not to result in default. But who cares if the EFSF is downgraded if it can't stop Greece from defaulting? That's its whole reason for its existence.

This doesn't signal a euro breakup, as Italy seems to be managing to push through its austerity measures. But a whole new plan of action may be needed for orderly euro exit, pushing this daily debt debate out another year or two.

Columnist Conversations

there is some very heavy selling today and poor price action in Facebook today.  in the first hour the st...
Stock has been roasted last five trading sessions. Time to rotate into Ford ahead of big CEO long-term plan re...
Equity futures were up slightly just before 9:30 PM Sunday night.
Spent a good amount of time with PayPal CEO Dan Schulman this week...and came away fully understanding why thi...



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.