A simple market rule
The international markets have learned to show their trust through the way they invest their money. When they have confidence in the abilities and prospects of a certain country, they invest in it. When they smell risk, however, they tend to run away.
Over the past few weeks, international markets have put money in Greek banks and have shown renewed investment interest in Greek companies.
To be sure, the markets have in-depth knowledge of the shortcomings – structural and other – dogging the debt-hit country. They have been watching it closely for the past few years.
At the same time however, their moves appear to be driven by the knowledge that Greece has hit rock bottom and can only go up, entering an economic upswing. That would go against even the gloomiest predictions from our foreign lenders.