When the resolution of the debt crisis comes, whether as a “Grand Bailout” or “Unparalleled Default”, I anticipate the markets will likely make a big-time move.
The FTSE 100 was up 1.98% while the DJIA went up 0.07% on news of “good progress” in Greek bailout talks. Nonetheless, via credit default swaps, market traders are pricing in 100% probability of Greek default.
That’s an amazingly wide disparity of opinions. We live in interesting financial times indeed.