Where is Market Heading Next

Recently I read an article about making money on internet that made me think about how difficult it is to survive in competitive business. And then I got to think about what my friend said once how everyone, if they had a choice, would prefer to work for the government. The same seemed to have happened in Greece.

And it seems that problems over there have been swept under the rug again. At least that is what the market is telling me. Euro started to go up against the dollar like all the problems are resolved now. But the basic underlying problem of overspending and inefficiencies remain. They are talking so much about cutting spending but that alone won't do. Until the address the issue of how difficult it is to run the business in Greece (and most other countries in Europe), not much can change. This over regulated economy can not depend on public sector for employment, and when a small business owner has to worry about supporting something like three different bureaucrats, he can not think about adding new employees but rather have to worry how to barely survive. The amount of red tape that is keeping all those countries (from Greece to Portugal) from experiencing dynamical economical growth is not being reduced. Rather, they are just planning on cutting salaries and benefits. But nobody is talking about structural changes that are badly needed. Everyone seems to complain that they will not be able to get that government job that they desperately want. What a waste of human energy and potentials!

So, this leaves me thinking of how is all of this going to effect currencies? I really do not see why Euro should be going up from here based on solving Greek problem alone. On a day like today, I really will go short Euro and put my stop loss above recent high.