Greece may leave? It would be a mess? Duh

While a Greek exit from the euro zone is a distinct possibility and the extent of the mess it will create is highly worrisome, the comments yesterday from the ex Greek PM was just stating the obvious to anyone paying attention over the past month since the election. He doesn’t want Greece leave but it could happen and it would be ugly if it did. Duh. This said, the markets are on edge and sensitive to every possible out of control scenario coming out of Europe. A German newspaper is reporting that the ECB has formed a group to prepare for the possibility of Greece leaving the euro and said the ECB would take new steps if the financial markets freeze up. While Germany will be pushed for euro bonds at the EU summit, the German Deputy Fin Min said no way Jose stating bluntly “euro bonds mean nothing other than that Germany would be liable for 100% of the debt in the euro area, not just Germany but also France.” Germany sold two yr notes at a whopping yield of .07%. Italian consumer confidence fell to a new low at 86.5, 3 pts below estimates. In Asia, the BoJ stayed on hold and the yen is getting back all it lost yesterday vs the US$. In the US, mortgage rates hit a new low and it helped to boost refi apps by 5.6% to a 14 week high but purchases were not lifted as they fell 3% to a 4 week low.

II: Bulls 38.3 v 39.4 Bears 26.6 v 22.3

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