Asset Allocator's Soapbox: Tony Yousefian

Leaders have yet again had to lock themselves away in a room and bail out the banking system. This time the culprit was Greece. The result was a relief package of approximately $1 trillion dollars, which is bigger than the $700bn TARP program responsible for bailing out the banks in the wake of the Lehman Brothers bankruptcy. One of the immediate conclusions that can be drawn from this massive bail out is that no loss is too small to be socialised, and as a result there was a rampant rally in the Euro and wider stock markets. It is interesting to analyse how they have arrived at this €75...