The markets are surging again today. This is the third day in a row as the Dollar continues to fall. The Dollar is weaker after Greece voted to push through major new austerity measures. This means that Greece will not default next month. The Euro jumped and the Dollar weakened. Essentially, this is a bank bailout once again. With the exposure to credit default swaps, banks would take major hits if Greece defaulted. In addition, if Greece were to default, a chain reaction would ripple through Spain, Portugal and Italy. There would be another global financial crisis. To bail out Greece instead of the banks in a year was a political move. It looks much better to bailout a country and its people, rather than banks. In response to the bailout, bank stocks are surging. JPMorgan, Goldman Sachs and Bank of America are all ripping higher.
