EU Has Answer for Greece?

On Thursday, February 11, 2010, the U.S. equity markets rallied as investors looked forward to details on a Greek bailout plan. Unfortunately, no details would be forthcoming on Thursday, so the markets decided they would rally in anticipation of details that would outline a lifeline for Greece and presumably other troubled Euro nations that may find themselves in similar straits.

It appears that markets will move on any information or disinformation in the marketplace. It seems that the markets moved based more on the fact that they had sold off and were primed to be bid up by participants. Can anyone explain the recent moves by United Airlines' stock while the rest of the market (and other airlines) seemed mired in a limited trading range? Hard to explain this one. Because of the lack of retail participation in the equity markets (atleast the last 12 months), we can only assume that professional investors are picking particular stocks and bidding them up between eachother hoping for retail participation to then unload on at inflated levels. Sound paranoid? You bet it is. And why not. If you bought the S&P 500 ten years ago and held it until today, you'd be up exactly your dividends received and that's about it. Why take that chance with risk when you could have performed as well or better in a fully-insured bank ceritifcate of deposit, or better yet, AAA-insured municipal bond? Should investors be skeptical? You bet they should.

On the political front, Washington DC remains covered in snow after a historically massive snowfall and government offices remained closed for a fourth day. I think this respite from political haggling over everything from health care reform to job creation plans, is much needed. The amount of cynicism in Washington DC rivals only that of Californian's belief that the state can be saved from it's budget woes. Is there a savior for California? I saw a nice commercial with Meg Whitman this morning. Maybe she has an actual plan. I say give her a shot. Maybe the entire working population of California can go to work for eBay. Just a thought.