What's the main difference between this Greece debt negotiation and all the others over the years? It's just sentiment. The consensus sentiment among market commentators is 'Greece doesn't matter'.
We can read that as 'i'm positioned as if Greece doesn't matter'. In the other most recent Greece debt crises, the sentiment was exactly the opposite. We'd hear things like Greece is going to lead to the end of the European Union etc
The question is how long does it take for that sentiment to turn? Given how negative sentiment has been, maybe it's sooner than later.
More:
Over the weekend in the Rotation Report, I penned this
Frankly, it doesn't matter if Greece gets kicked out of the eurozone, defaults or whatever. What matters is they're challenging the status quo of an antiquated system. When all the cards are on the table, they know they have less to lose than the IMF. It'd be quite easy for this rationale to catch on across the globe, given there are so many highly indebted parties everywhere.
It should be noted that's long term potential concern and nowhere near sentiment that's driving the market near-term.
Thanks for reading!
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