by Bill Bonner, Daily Reckoning:
“It’s a total disaster. It’s like hell here.”
Thus did a trader describe the reopening of the Greek stock market.
The main Athens stock market index, the Athex, ended the day down 16%, after trading was allowed for the first time in five weeks.
And it was down by more than 23% just minutes after the opening bell.
Down and out… despised… scorned – the situation in Greece is excellent.
For investors with ultra-long-term time horizons and strong constitutions, it may be a great time to buy Greek stocks…
Yes, prices are being discovered again… by free declaration of buyers and sellers.
Owners of Greek stocks are discovering that their equity stakes aren’t as valuable as they believed.
But for every seller there is a buyer…
Sellers are losing money. Buyers believe they are getting a bargain.
You can fool all of the people some of the time. Some of the people all of the time. And most of the people once in a while.
You can obstruct price discovery and you can disguise and distort the real value of things. But Mr. Market will get even someday. He always does.
Yesterday, we mentioned but did not explain, that Alan Greenspan betrayed Mr. Market…
In 1987, after President Reagan appointed him Paul Volker’s successor as chairman of the Federal Reserve, Greenspan went over to the zombies… or more precisely, to their allies, the cronies.
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