@ Scubidu. The author provides a limited timeline over which to comprehensively analyse.

A long term chart filters noise and brings to the fore the steady uptrend from 1981. Once that line-in-the-sand is broken, look down below.

In the medium term, U.S. Treasuries are set to benefit from safe harbour status as contangion fears plague Euro bonds. Please note the spike high in 2008 as investors abandoned many a market amidst the financial storm.

However, over the long term, the debt tsunami will set course for the U.S. mainland. Debt investors will then seek shelter in stocks, commodities, real-estate, the Aussie, Swissie and Canadian Dollar.

http://www.mrci.com/beta...p;source=/pdf/us.pdf%22

Uganda = Oil + Gold ?

Hakuna Matata !!!

Greece had a choice between a red and blue pill to treat its debt malaise. The red pill has after effects of debt default which equates a swift economic collapse, flight of capital then recovery. The blue pill, a bailout package which includes public sector austerity measures, higher taxes and unemployment; therefore a long protracted depression. It has picked blue.

Consider for a moment, if neither the government nor the private are spending, then who is?

If capital flees Greek stock and debt markets to overseas markets, how will investment flourish?

If both capital expenditure and investment are non-existent, how will the populace obtain employment?

The Euro breached the $1.29 level to the dollar, opening the door to the 1.23 level which was the low in October 2008.

"ATHENS -- Greek protesters set fire to a bank, killing three people, on Wednesday in the most violent reaction to date to the government's austerity plan.

Groups of masked youths hurled petrol bombs, stones and sticks at riot police as nearly 50,000 striking workers and public servants marched to parliament, where a bill dictating pay cuts and tax hikes was due for debate..."

Read more: http://www.financialpost...d=2989213#ixzz0n7t6S4bO

Markets are intriguing.

The tremors from the financial crisis have migrated as follows:

Sub-prime real estate -> Investment Banks -> Banks -> All Markets -> Municipalities -> States -> Nations -> Debt Markets -> Banks -> ????

"The spectre of counterparty risk, last seen in dramatic form in the wake of the Lehman collapse, is returning to the European banking sector in an early warning sign that some banks may collapse in the wake of the eurozone’s sovereign debt crisis.

Banks are now more reluctant to lend to each other than at any point since the problems of Greece first blew up last October, according to analysts at Tullett Prebon and Icap, the interdealer brokers...."

Read more:

http://www.ft.com/cms/s/...49a.html?nclick_check=1

@ Guru267. The NSE topped out on 27th of April at 4289 points but is yet to provide an indication of a further rise or decline.

The JSE is much more correlated to the London Stock Exchange due to a sizeable portion of cross-listings.

Fear is the primary force behind market moves at the moment. The invisible hand is nudging market particants towards ports of safety regardless of long term fundamentals (remember 2008?).

Those that brand the current turmoil as a storm in a tea cup have not read their history books. Sovereign Debt Crises are the big kahuna.

A break in a chain-link is often at the weakest point. Greece is Europe's weak link.