Greece and the Sovereign Soup Are Getting Hotter

By Todd Harrison  APR 23, 2010 11:15 AM

Earnings to the left, bailouts to the right.


The final fifth of our freaky week is upon us as we weigh the fray from around the world. While overnight earnings dominated the newswires -- watch Amazon (AMZN) and Microsoft (MSFT) for their reaction to news -- lurking concerns continue to creep into the collective conscious of mainstream investors.

From Aegean bailouts and social unrest (the next phase of the tricky trifecta is upon us) to two-sided regulatory risk and historic accusations of financial fraud (part legal, part political), the mindshare of the marketplace is most certainly crowded. All the while social mood is shifting and class wars are percolating, as the rich get richer and the poor get sorer.

As I wrote earlier in the week, what were once parallel, coexistent paths of mutual -- albeit disproportionate -- prosperity between Wall Street and Main Street has morphed into a V-Shaped recovery of a different kind, with the great divide growing wider with each passing day. The rising tide of the markets was perhaps intended to lift all boats, but it’s caused many to count life-preservers as they question the captain.

The Chinese have a proverb, “May you live in interesting times.” Our grandchildren will study these last ten years -- and the next ten years -- as the most meaningfully profound period in the history of financial markets. It hasn’t been easy, nor does it promise to be, but take me at my word; those who emerge on the other side of this ride will define the next generation business landscape. We simply have to get there, one step at a time and together as one.

Some Random Thoughts:


Position in S&P