TraderTalk– “Smart Trade Group” – Greece Lurching Towards Safety Net…

April 12, 2010 - PRLog -- “Smart Trade Group” says that Greece is being “punched out” by the markets and is stumbling towards the EU/IMF safety net as investors impose higher borrowing costs despite its government’s efforts to reassure markets that it can remain solvent.

Analysts at “Smart Trade Group” believe that Greece will have to publicly turn to the EU and the IMF and ask for help despite concerns that the plan is scant on details.

Greece’s bonds have been under siege for three straight days and yields have been pushed to new records. The government has been rocked by a spate of riots, strikes and general civil unrest by a public angry about wage cuts, tax hikes and public spending curbs. The government has pledged to cut its deficit by one third to 8.7% via a string of austerity measures but tapping the EU/IMF lifeline will inevitably involve Greece having to agree to more restrictions which could tip the country into social crisis said a source close to “Smart Trade Group”.

Matters will not have been helped by Prime Minister George Papandreou’s recent castigation of market speculators whom he accused of deliberately undermining Greece’s ability to endure the crisis.

“Smart Trade Group” says it continues to advise clients to avoid bonds and funds investing bonds citing the mounting concern that markets are approaching saturation point in the face of unprecedented sovereign debt issuance.