Those who would promote fear in our markets also may stand to gain if people believe it. And if people believe it strongly enough, that fear may become reality.
It is obvious that if Greece were all of the sudden leave the Euro and refuse to pay debts, it would send shock waves through the World economy, most likely similar to the "Lehman moment" that brought about the deep shock in the American economy in 2009. However, some points to ponder:
1. 85% of Greeks polled said they do not want to leave the Eurozone
2. There is growing support for a Eurobond that would bail out Greece for some time to come
3. There is increasing support for fiscal stimulus, not just in Greece, but in other places too. The election of a socialist in France reigned in this trend ever more clearly.
There is increasingly a move toward stopping austerity which has only deepened the recession in Europe, and beginning stimulus to help bring Europe out of recession. Euro bonds would help pave the way for this new era in Europe.
Meanwhile, purveyors of Gloom and Doom are abundant. Paul Vigna of the Wall Street Journal let's us know the end is near. But this also will lead people to sell their positions in fear, and investors will be able to buy stocks at a low price and make billions.
I tend to think the gloom and doom is about profits, and let about reality. Keep some money in cash. Should the Eurozone fall which I think is not very likely, it will be a great buying opportunity. And more likely, right now is a great buying opportunity as the gloom and doom will probably wear off soon as we see the increasing support of Eurobonds and fiscal stimulus.