DJI - What an ugly day yesterday...

Trying to read every little squiggle yesterday, after rumors about bailing-out Greece, was the closed one could come to hell.

But the just over 61.8% retracement of wave 1 of black circle wave 3 at 10,132.42 (the high was 10,138.22) was just the perfect ending point for wave 2 calling for the onset of wave 3. A break below 9,976 would confirm that wave 3 down has begun for a move closer to the 9,359 area at least.

I don't see the bail-out of Greece as positive in any way. Yes it removes the problems that Greece have, but it just lays the burden on the Euro-Zone instead. I still find it hard to belive, that the Germans is willing to bail-out the Greeks. Germany bail-out East Germany and the cost was huge and whats more they speak the same language, but I'm sure they don't have the same warm feelings towards the Greeks (I have absolutly nothing against the Greeks don't get me wrong, but why should the Germans suffer because the Greeks was having a ball? Sorry I just don't get it)
What about Portugal, Spain, Italy, Ireland will they be bail-out too? The Maarstricht don't even allow a bail-out, who will they by-pass that? How if UK Denmark or Hungary gets into touble will they be bailed-out. Remember in 1992 when the British Pound broke the EMS-system. At that point the UK Government bet on the Germans would come to their rescrue, but they didn't do that.
The questions are more than the answers at this point.

Please see the below statement from Otmar Issing:

"If Greece needs a bailout, it would be far better for it to seek one from the International Monetary Fund than from other euro-zone countries, Otmar Issing, a former top official of the German and European central banks, said Friday.

“I don’t think that the E.U. can impose the kind of sanctions that would be needed, and it would make Brussels too unpopular,” Mr. Issing said during an interview by telephone from his office near Frankfurt. “A better way is for Greece to approach the I.M.F. It is the only institution that can impose strict enough conditions.”

Mr. Issing was chief economist of the European Central Bank from 1998 to 2006 and one of its most influential executive board members. Previously he spent eight years as a board member of the Bundesbank, an institution that expressed doubts about the wisdom of expanding the euro zone beyond core West European economies.

Bailing out Greece would involve “a more or less disguised transfer of taxpayer money,” he said, “and I don’t see any support for that from the people in Germany or elsewhere.”