The Importance of This Week

This is a post I’ve read by Business Insider on why this week could be a turning point.

A quick reminder for you: this week is going to be nuts.

First on Greece obviously. This isn’t anywhere close to being resolved, and all eyes will be on the country on Tuesday night (around midnight Greece time or 5 PM ET) when the Papandreou government holds a confidence vote in the runup to a vote on austerity.

It’s crucial that all the votes pass.

Yes, this is very crucial. A Greek default would take down lots of banks with it, which would cause a further deleveraging of more banks. If Greece defaults (takes the “easy way” out), the other PIGS will want to default too. And then we’ll have a catastrophic situation to deal with.

Then right after that, on Wednesday, we get a gigantic FOMC meeting, which will be followed by another Bernanke presser.

If you thought the first press conference was big, this one will be way more so, given the imminent end of QE and the sagging market/waning recovery.

There’s also decent docket of economic data:

  • Tuesday: Existing home sales.
  • Thursday: The Chicago Fed Index
  • Thursday: Initial claims:
  • Thursday: New home sales:
  • Friday: GDP (third reading)

Overseas, on Tuesday we get the flash Chinese manufacturing PMI from HSBC, a quick look into how the economy is performing this month.

Like I said, I don’t believe QE3 is coming anytime soon. And as we’ve seen from economic data these past few weeks, we keep getting suprised (in a bad way).