Greece’s prime minister is playing the well-worn speculator card, as an excuse for declining market confidence in his nation’s finances.
What’s always lost on those who blame speculators is a consideration of why speculators believe that it’s profitable to trade against them.
No country can defy market forces forever and speculators generally pile in when they believe market forces will go their way. In fact, they have to be pretty confident in their beliefs since in the end the dice are actually loaded in Greece’s favour, given the potential for a Eurozone bailout.
Reuters: “Greece is at the centre of an unprecedented speculative attack… resulting in the strangulation of our economy,” Prime Minister George Papandreou told an economic conference.
“The level of Greek government spreads is completely unjustified in relation with the real situation of the Greek economy,” Papandreou said.
“The country cannot remain at the mercy of its lenders and markets, it needs to be able to define its own course,”
He must be personally loading up on Greek bonds, if they’re so cheap.