World stocks fell to a 15-month low and the Euro fell off a cliff as reports came that Greece would, once again, miss its deficit target of 7.6% this year. This increase worries that a Greek default is inevitable.
Of course it is!
Although I am no longer in the finance sector, from the outside looking in, I am not surprise that Greece missed its target. This is not the first target Greece has missed and surely it comes as no surprise that Greece continues to have problems paying its debts. A Greek default was always on the cards because try as they might, European policymakers have been unable to find a solution to the Greek crisis.
Personally I have to say this is a piece of news that everyone should already had expected. The admission by the Greek should not come as any surprise and the only surprise I have is that the market has not factor in the default already.
In my view, a Greek default should have been factor in already by the markets as the Euro's downside risk easily outstripped the potential upside. However market players seem to have hope that the politicians can pull a rabbit out of the hat and prevent a default.
However as they say; hope for the best, but prepare for the worst. So if you were by this latest downturn of the market; I’m sorry but you really should have known better.