Episode 53: The Greek Financial Crisis

by robbooker on June 11, 2012

Play

It’s the episode you’ve been waiting for… Your Traders Podcast host, Rob Booker, gives you an in-depth analysis of the Greek Financial Crisis. Rob springboards into this podcast by using a couple of audio clips of James Altucher, an American hedge fund manager, author, and blogger, who describes how he thinks Greece and Europe are related, and the humorous concept of “the Greek contagion.”

Rob also discusses whether there is enough exposure to the U.S. banking system for Greece to matter. He gives you his take on the long-term and short-term plays on this Greece news, and to what degree it’s a potential problem. And Rob talks about how the perception of the market is always more important than the reality.

And naturally, as one might expect, we close out this episode by giving you the best weapon for surviving during a zombie apocalypse. Thanks for listening!

Learn more from James Altucher: James Altucher.com

{ 1 comment… read it below or add one }

Amarsir June 12, 2012 at 6:24 am

Excellent cast, you could not be more correct about not trying to rationalize the market when it isn’t necessarily rational.

That said, it’s also a potential mistake assign post hoc reasoning to moves with great confidence. In this case, maybe the markets aren’t reacting to Greek “contagion” and more to the potential that Italy, Spain, Ireland & Portugal could go the same way (all much larger). Or to a Chinese slowdown. Or to a falloff in the already-lacking US hiring. Or to JPM’s losses and potential regulatory reactions. Or just to the fact that the Oct-March run seemed overbought.

It’s just hard to separate what’s an over-reaction to Greece from what might be an appropriate anticipation of something else. But that said, “buy when others are fearful” is indeed some pretty good advice.

Reply

Leave a Comment

Previous post:

Next post: