Wall Street is always climbing a “Wall of Worry”. The current one is the Greek debt crisis, and it does indeed have the potential to be a big problem. Fortunately, it is becoming increasingly apparent that it is definitely in the best interests of the entire European Union to keep Greece from defaulting. While the EU constitution expressly forbids direct assistance, there are many indirect ways to do so. Now, there is a feeling that Greece must not get off too easy and must “twist in the wind” for awhile. It is also important the other nations see Greece suffer before they ask the EU for help. I’m now confident this problem will be solved satisfactorily . . . but not as soon as the market would like.
So, don’t expect this opera to end soon! This still has the potential to become a heart attack and therefore will hang over the market for awhile, which is just fine, since the market is ahead of the economy anyway.