Greece gets its bailout

The game of chicken is over. Europe blinked.

European governments have agreed in principle to support struggling euro-zone member Greece and are considering various options, including bilateral aid, a senior German coalition source said on Tuesday.
"The decision on help for Greece has been taken in principle within the euro zone," the source said.

This bailout eliminates the short-term problems with the bond market. However, it creates a huge moral hazard down the road.
Nonetheless, look for a relief rally in global stocks and European bonds.

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I expected this

when contagion was happening for the globe...

which is yet another thing not mentioned here. These idiots with their WTO/trade/free capital flows created an interdependent mess and they have no idea how it all interacts.

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Here comes Germany too

Germany to aid Greece.

What would be interesting is to examine the contagion. This is an unknown effect, admitted and I wrote up some aspects of it, but in particular instances, timeline of events and to why it's this domino if of interest. There are no safeguards in the global system and while we cannot even get the most basic of financial reforms, this one, the big economic neutron bomb created in the 90's, goes pretty much unexamined.

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Greek bailout not going to happen?

Conflicting information.

The spokesman for Germany's coalition government has denied that Berlin is close to unveiling a plan for financial aid to fiscally-troubled Greece.
The spokesman, Ulrich Wilhelm, rejected earlier reports that a Greece package was nearly a done deal, calling them "incorrect."

OTOH, an official denial is necessary before the rumor can be confirmed.

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how about trades behind the headline scenes?

See what the volume is, who is shorting the Euro, CDS spread, who is buying what and when.

These headlines are clearly manipulating markets, bulls want Greece bailed out, so what is the volatility and who is playing it all like a fiddle?

I'll bet dollars to donuts our pal, Goldman Sachs is in there, but I haven't looked at any technicals.

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Delong Greece % EU GDP

This is linked from Brad Delong:

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Greek Yo-yos

Now the EU is not giving a bail out...

yet supposedly the IMF is lurking in the background, with their requirements for draconian reductions in social services, pensions, labor etc. that they like to impose for loans.

I hope midtowng or someone is watching all of this because I personally cannot keep track of the never ending yo-yo "on again, off again" messaging on what's happening to Greece and a potential sovereign default.

It's like a bad date.

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