Elliott Wave InternationalmyEWISocioniomics.Net

Home > European Markets
If They're Not Sinking, Why Are They Bailing?

Wed, 04 May 2011 17:00:00 ET
Bookmark and share It!

GAINESVILLE, Ga. / May 4, 2011 -- In months past, European authorities remained confident that the sovereign debt crisis plaguing Greece and Ireland would not seep into Spain, Portugal and beyond. But analysts at Elliott Wave International reiterated their assertion that the recent “bailouts” of European countries would not allay mounting fears of default.

As the chart to the right shows, "The cost of insuring the sovereign debt of these countries is now well past the extremes registered at the worst of the 2008-2009 credit crisis. Even as the countertrend rally in stocks holds up, Portugal teeters on bankruptcy, and an even bigger disaster, Spain, waits in the wings." - Elliott Wave Financial Forecast, April 1, 2011

With Portugal joining the list of ailing euro economies as the latest country to accept international aid, most traditional economists once again breathe a sigh of relief. Yet analysts at the Georgia-based financial forecasting firm insist instead that it is "2008-2009 all over again. The only reason that 'legal' defaults aren’t happening now is that it’s 'not in anyone’s interest for anyone to default.' In the next phase of the bear market, money will disappear and there will be no choice."

For a copy of the report referenced above or to schedule an interview with Elliott Wave International's European analyst, Brian Whitmer, contact alexandral@elliottwave.com, 770-536-0309.

Tags: europe, portugal, bailout

Rating: - based on [22 rating(s)]
Rate this content:
  



© 2013 Elliott Wave International

The Elliott Wave Principle is a detailed description of how financial markets behave. The description reveals that mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific Elliott wave patterns in price movements. Each pattern has implications regarding the position of the market within its overall progression, past, present and future. The purpose of Elliott Wave International’s market-oriented publications is to outline the progress of markets in terms of the Wave Principle and to educate interested parties in the successful application of the Wave Principle. While a course of conduct regarding investments can be formulated from such application of the Wave Principle, at no time will Elliott Wave International make specific recommendations for any specific person, and at no time may a reader, caller or viewer be justified in inferring that any such advice is intended. Investing carries risk of losses, and trading futures or options is especially risky because these instruments are highly leveraged, and traders can lose more than their initial margin funds. Information provided by Elliott Wave International is expressed in good faith, but it is not guaranteed. The market service that never makes mistakes does not exist. Long-term success trading or investing in the markets demands recognition of the fact that error and uncertainty are part of any effort to assess future probabilities. Please ask your broker or your advisor to explain all risks to you before making any trading and investing decisions.