Kumbaya my Lord, Kumbaya…

Kumbaya my Lord, Kumbaya, Someone’s singing Lord, Kumbaya…Someone’s laughing…Someone’s crying…Someone’s praying. The lyrics seem appropriate after the EC Pres said “there is an accord” and the German Chancellor said “Greece won’t be left alone but there are rules and these rules must be adhered to.” We’re anxiously awaiting the details. Greece CDS is in by 24 bps to 332 and their 10 yr yield is lower by 16 bps to 5.85%. While it seems that a major fire has been put out, the problem of too much debt and too little growth for many overly indebted countries remains. Australia, which does not suffer from this disease, had a great Jan jobs report where 52.7k jobs were added vs forecasts of 15k. To put into perspective, it’s the equivalent of the US adding 740k jobs if adjusted for population size. The Yuan is falling to the lowest since Aug after China CPI was well below forecasts. Jan new loan growth was huge but will slow.

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