Weekend Economists View the Trojan Horse June 15-17, 2012

[Demeter]

20. Hope lifts Wall Street before Greek election

http://news.yahoo.com/stock-index-futures-flag-higher-wall-street-open-091445413--finance.html

Stocks rallied on Friday to close a second straight week of gains on hopes of collective action from global central banks if Sunday's election in Greece triggers market turmoil.

The news helped offset the latest round of weak U.S. economic data, which pointed to sluggish domestic growth. But traders were cautious and safe-haven U.S. bond prices also rose on Friday...

...Officials of the Group of 20 leading nations told Reuters on Thursday that central banks of major economies would take steps to stabilize markets and prevent a credit squeeze, if necessary. The news spurred sharp gains late in Thursday's session. Later reports of the European Central Bank hinting at an interest-rate cut and Britain's pledge to flood banks with cash sparked further bullishness.

"It pokes a hole in the balloon of bad news after more bad news," said Richard Sichel, chief investment officer of Philadelphia Trust Co.

"None of the (U.S.) economic data we saw today were impressive. The gains seem to be based more on hope and less on the economic reports."

HOPIUM...CAN'T KEEP A BAD MARKET DOWN!