“We are endorsing the Greek program, we are giving confidence and supporting the Greek authorities” but “the implementation of this program is not easy” said the EC head. While the acceptance was expected yesterday, the official news is leading to another bounce in Greek stocks, by 1.4%, a rally in Greek debt and a 1 week low in 5 yr CDS. The euro is also rallying to just shy of 1.40 vs the US$. Other European markets rallied in response and followed a bounce in Asia where China was up for just the 3rd day in 11. While it’s very difficult to have all these countries in the Euro zone with many different fiscal policies but one monetary policy, what I believe has been proven in this sovereign episode is the Euro currency is forcing discipline on individual members. ABC confidence fell 1 pt to -49, matching the lowest level since early Nov. With mortgage rates steady, the MBA said refi’s rose 26.3% and purchases were up 10.3%.
