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“Only those who will risk going too far can possibly find out how far one can go.”

T. S. Eliot

Commentary & Analysis
The Greeks used to call it “hubris”

Proudly spending other people’s money with little in the way of accountability might be considered hubris by those of a more conservative bent. It seems socialists think that represents “justice.” From the Financial Times this morning:

The Greek parliament has approved a law proposed by the leftwing Syriza-led government overturning civil service reforms by the previous government aimed at streamlining the country’s inefficient public sector.

The legislation, which was passed on Tuesday night, called for the rehiring of about 13,000 civil servants whose jobs were cut in an overhaul of the public administration agreed with bailout lenders. It also eliminated annual evaluations for civil servants and promotions based on merit.

I just love that last part—let’s forget about that “merit” thing. Is this supposed to instill confidence for anyone willing to lend Greece money?

The euro remains supported on rising German yields, as you can see in the chart below. But one wonders just how much more Eurozone grownups can stand. If German yields start to fall again, it likely means Greek risk is intensifying, i.e. players moving back into German paper to hide…

EUR/USD versus 10-year benchmark spread Eurozone (Germany) minus United States:

EUR/USD Daily – Bullish View: I am still considering this move “corrective” before the trend move down gets underway….

A Greek tragedy means technical analysis won’t tell us much. So stay tuned.

Thank you.