and it looks like EU blinked first and giving Greece until Sunday to come up with a plan. I think a plan will be worked out with Greece getting a bit better deal and everyone goes back home happy.
They aren't going to get a better deal. They've been told by Germany that now they have to make greater austerity plans since they've decimated the economy in the last six months.They went to the meeting today and didn't even bring a proposal.
Sunday is the meeting with all the European countries not just the Eurozone. The purpose of the meeting is to discuss an oderly Greek exit and humanitarian aid. Greece has until then to request a bailout, present a plan and negotiate at the very least a bridge loan until the end of July.
Sixteen out of eighteen countries in the EZ are against debt relief for Greece. They did not blink but instead have lost all trust that Greece will be able to pull it off and come up with a credible plan. I would be amazed if Greece didn't default at this point. When you call your creditors 'criminal' and 'nazis' and 'terrorists' as they have done you destroy a lot of goodwill.
It's just horrible out there in the economic world. I'm not sure what the problems in Europe will mean for the price of copper but I hope not much. The rest of the EZ are actually improving quite well and we have to hope if Greek exits that it won't have much effect since they are less than 2% of the overall GDP of Europe.
It seems that the price of gold has not gone up since the Greek crises and that is an indication that people aren't too worried about it.
The market in China does look like a correction in the sense that a lot of people got excited and dove right in and then got worried and pulled out. Maybe it will help us if people start using copper as an investment again.
I was wondering too if it is those big hedge funds in China mucking about again like they did in January. They were shorting copper pretty heavily and now here we are again with copper dropping to six year lows. We'll have to wait and see if they're still shorting copper after this mess. They might be our best indicator of the near-term future.
I just checked, Shanghai Chaos closed out their short position three days ago. Thank goodness that's over with for the time being. If they start buying then we'll know we're in luck.
