“It’s a dangerous thing to confuse children with angels”- Thurston Howell
Germany finds itself in the same situation today. The country has become the rich Uncle that has bailed out the nephew (Greece) that constantly gets jammed up financially. You know, the guy that tapped his equity line to buy a 70” LCD TV in every room and maybe a small boat and a couple of BMW”s to dress up his driveway. The rich relative acquiesces and helps him out, he’s a good guy, only to find out that the dumb nephew then flies the family on a G-5 for a first class family vacation in Rio. The dumb nephew goes back to the rich Uncle for some more help. This time however, Uncle Rich guy is thinking about it, but going forward he wants total control of the nephews check book as he realizes his nephew is an an idiot and is incapable of even the most minimal austerity measures. The nephew doesn’t like this at all.
The gang meets today in Brussels and we may have some clarity on how this melodrama pans out at around 1PM.
Facebook $FB is filing its IPO this week and will list on the NYSE. Mark Zuckerberg will make about $ 20 billion, Accel Partners about $ 10B (they were the first fund that bet on Zuckerberg) Greylock Partners (Reid Hoffman of $LNKD and $GRPN fame) cashes in for about $ 1.5B, Peter Thiel of Paypal fame makes about $2.5B and Elevation Partners cashes in for about $1.7 B (Bono from U2 has a stake with them). And in the only thing Steve Balmer has done right in years, makes about $ 1B. Not personally, but from a $MSFT investment.
It will be an exciting week ahead as we will also see some important economic data as we move forward. The $SPY was fairly flat last week, so the bulls and bears are both wondering if that was only a pause that refreshes or sign of exhaustion with lower prices ahead.
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